SOURCE: Cardiac Network, Inc.

Cardiac Network, Inc.

June 10, 2010 15:15 ET

Cardiac Network Announces Reverse Stock Split

SAN FRANCISCO, CA--(Marketwire - June 10, 2010) - Cardiac Network, Inc. (PINKSHEETS: CNWI), a developer of advanced mobile medical monitoring systems, confirmed today that its Board of Directors has approved a reverse split of Cardiac Network's common stock.

As currently contemplated and subject to approval of the Company's stockholders, the Company anticipates that if the proposed reverse stock split (the "Reverse Stock Split") is approved, then the reverse split of the Company's common stock is currently expected to range from 1-for-500 to as much as 1-for-750. The exact ratio for the Reverse Stock Split is to be determined by the Company's Board of Directors and the holders of a majority of the Company's outstanding Common Stock.

The effective date of the Reverse Stock Split will be determined after the Company completes necessary filings with the Financial Industry Regulatory Authority (FINRA). After the Company obtains approval from the holders of a majority of its Common Stock, the Company plans to prepare and file an application for a new stock trading symbol with FINRA. The Company will also be assigned a new CUSIP number in connection with the Reverse Stock Split.

The Company believes that the Reverse Stock Split may allow the Company a better opportunity to raise capital and the Company's Common Stock may trade at a higher share price level depending on market and trading conditions at the time that Reverse Stock Split takes effect. In that event, the Company hopes that a broader market interest in the Company's Common Stock may reduce per share transaction fees and certain administrative costs.

If the planned Reverse Stock Split is approved, then the Company anticipates that it will also result in proportional adjustments in outstanding Common Stock options and other equity incentive awards, equity compensation plans and convertible notes. However, the number of shares of the Company's authorized Common Stock will not be affected by the planned Reverse Stock Split.

More information on the Company's planned Reverse Stock Split will be available on the Company's "Reverse Stock Split FAQs" on the investor page at www.cardiacnetwork.net as soon as filings are completed with FINRA and more information is known.

About Cardiac Network:
Cardiac Network, Inc. is a medical technology company providing cardiac monitoring and diagnostic services to general practitioners and specialist physicians, for the investigation of patients with abnormal cardiac rhythm and function. The current service uses unique transtelephonic (by telephone) cardiac recorders that monitor and provide diagnostic information to physicians and their patients. Cardiac Network also offers its services to individuals which help them quickly determine if they are having potential cardiac problems so they can obtain immediately needed medical treatment. Learn more about Cardiac Network, Inc. by visiting http://www.cardiacnetwork.net.

FORWARD-LOOKING STATEMENTS

THIS PRESS RELEASE CONTAINS "FORWARD-LOOKING STATEMENTS." FORWARD-LOOKING STATEMENTS ARE STATEMENTS CONCERNING PLANS, OBJECTIVES, GOALS, STRATEGIES, EXPECTATIONS, INTENTIONS, PROJECTIONS, DEVELOPMENTS, FUTURE EVENTS, OR PERFORMANCE, UNDERLYING (EXPRESSED OR IMPLIED) ASSUMPTIONS AND OTHER STATEMENTS THAT ARE OTHER THAN HISTORICAL FACTS. THESE FORWARD-LOOKING STATEMENTS ARE ONLY PREDICTIONS. NO ASSURANCES CAN BE GIVEN THAT SUCH PREDICTIONS WILL PROVE CORRECT. ACTUAL EVENTS OR RESULTS MAY DIFFER MATERIALLY. FORWARD-LOOKING STATEMENTS SHOULD BE READ IN LIGHT OF THE CAUTIONARY STATEMENTS AND RISKS THAT INCLUDE, BUT ARE NOT LIMITED TO, THE RISKS ASSOCIATED WITH A SMALL COMPANY, OUR LIMITED FINANCIAL RESOURCES, AND THE UNCERTAINTIES OF COMPETITIVE PRESSURES WE FACE. WE CAN BE CERTAIN THAT WE WILL OPBTAIN APPROVAL FROM THE HOLDERS OF A MAJORITY OF OUR OUTSTYANDING COMMON STOCK OR THE PRECISE NUMERICAL SIZE OF THE PLANNED REVERSE STOCK SPLIT. THESE OR OTHER RISKS COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THE FUTURE RESULTS INDICATED OR IMPLIED IN SUCH FORWARD-LOOKING STATEMENTS. WE UNDERTAKE NO OBLIGATION TO UPDATE OR REVISE SUCH STATEMENTS. FOR ADDITIONAL INFORMATION ON THESE RISKS AND UNCERTAINTIES, PLEASE REFER TO OUR FILINGS ON PINK SHEETS.

Contact Information

  • Contact:
    Cardiac Network, Inc.
    Michael Swartzburg
    415-362-2020 ext.102
    Email Contact