NEW YORK, NY--(Marketwired - May 13, 2014) - Fusion (OTCQB: FSNND), a provider of integrated cloud solutions, including cloud communications, cloud connectivity, cloud computing and additional cloud services such as storage and security ("Fusion" or the "Company"), announced that a one-for-fifty reverse stock split of its common shares is effective as of the opening of trading on May 13, 2014. As a result, Fusion stock will trade under the symbol FSNND until June 11, 2014, at which time the trading symbol will revert to FSNN.
CEO Matthew Rosen commented, "We believe that as Fusion continues to grow and approaches a $100 million revenue run rate, the investment community should be able to own our shares. Many institutional investors and most broker-dealers are not permitted under their compliance rules to recommend or to own low-priced stocks. This reverse split is intended to move Fusion shares out of the 'penny-stock' range and to increase their suitability for many more portfolios, both institutional and retail. It will also allow us to meet the criteria for up-listing to a national stock exchange."
Upon effectiveness of the reverse stock split, each fifty (50) shares of the Company's issued and outstanding Common Stock was automatically, without any action on the part of the respective holders, combined and converted into one (1) issued and outstanding share of Common Stock. The reverse stock split affected all issued and outstanding shares of the Company's Common Stock, as well as Common Stock underlying stock options, warrants and convertible preferred stock outstanding immediately prior to the effectiveness of the reverse stock split. The reverse stock split was previously approved by the Company's board of directors and by stockholders at the 2013 Annual Meeting of Stockholders held on March 28, 2014.
Stockholders holding physical share certificates will receive instructions from the Company's transfer agent, Continental Stock Transfer & Trust Company, regarding the process for exchanging their pre-split share certificates for new share certificates. Stockholders with shares held in book-entry form or through a bank, broker, or other nominee are not required to take any action and will see the impact of the reverse stock split reflected in their accounts. Beneficial holders may contact their bank, broker, or nominee for more information. Following the reverse split, certificates evidencing pre-split shares evidence only the right to receive a certificate evidencing post-split shares. No fractional shares were issued as a result of the reverse split and all fractional shares to which a stockholder might otherwise be entitled will be rounded up to the nearest whole share.
Fusion is a leading provider of integrated cloud solutions to small, medium and large businesses. Fusion's advanced, high availability cloud service platform enables the integration of leading edge solutions in the cloud, including cloud communications, cloud connectivity, cloud computing and other cloud services such as storage and security. Fusion's innovative, yet proven cloud solutions lower our customers' cost of ownership, and deliver new levels of security, flexibility, scalability and speed of deployment. Fusion is a trademark of Fusion Telecommunications International, Inc. For more information, please visit www.fusionconnect.com.
Forward Looking Statements
Statements in this press release that are not purely historical facts, including statements regarding Fusion's beliefs, expectations, intentions or strategies for the future, may be "forward-looking statements" under the Private Securities Litigation Reform Act of 1996. Such statements consist of any statement other than a recitation of historical fact and can be identified by the use of forward-looking terminology such as "may", "expect", "anticipate", "intend", "estimate" or "continue" or the negative thereof or other variations thereof or comparable terminology. The reader is cautioned that all forward-looking statements are speculative, and there are certain risks and uncertainties that could cause actual events or results to differ from those referred to in such forward-looking statements. This disclosure highlights some of the important risks regarding the Company's business. These risks include the Company's ability to raise new capital to execute its comprehensive business strategy; the integration of businesses following an acquisition; the Company's ability to comply with its senior debt agreements; competitors with broader product lines and greater resources; emergence into new markets; natural disasters, acts of war, terrorism or other events beyond the Company's control; and the other factors identified by us from time to time in the Company's filings with the Securities and Exchange Commission, which are available through http://www.sec.gov. However, the reader is cautioned that our future performance could also be affected by risks and uncertainties not enumerated above.