SOURCE: Pegasus Communications

January 03, 2007 18:48 ET

Pegasus Communications Announces Implementation of Reverse Stock Split and Change in Name to Xanadoo Company

BALA CYNWYD, PA -- (MARKET WIRE) -- January 3, 2007 -- Pegasus Communications Corporation (PINKSHEETS: XAN) announced that it obtained stockholder approval at its annual meeting of stockholders held on December 29, 2006 to implement a one for one hundred share reverse stock split of its common stock and has filed an amendment to its certificate of incorporation with the Delaware Secretary of State to effect the reverse stock split. At the annual meeting, stockholders also approved a change in the company's name from Pegasus Communications Corporation to Xanadoo Company.

The reverse stock split became effective on January 2, 2007. In the reverse stock split, each 100 outstanding shares of Class A Common Stock was combined into one share of Class A Common Stock. Any holder that holds a fractional interest in a share of Class A Common Stock following the reverse stock split will receive cash in lieu of that fractional interest in the amount of $3.25 per pre-reverse-split share, and will cease to be a stockholder to the extent the holder only holds a fractional interest. As a result of the reducing the number of stockholders through the reverse stock split, the company will be able to suspend its obligation to file periodic reports with the Securities and Exchange Commission, such as annual and quarterly reports on forms 10-KSB and 10-QSB and current reports on form 8-K. As previously announced, Xanadoo has voluntarily withdrawn its listing from NYSE Arca. The withdrawal became effective with the opening of trading today and Xanadoo's Class A common stock began trading on the Pink Sheets under the trading symbol "XAN."

About Xanadoo Company

Xanadoo Company provides wireless Internet access to residential and enterprise customers in Texas and has rights, including rights to acquire, 2.5 GHz licenses covering approximately 8 million people in Texas, Arkansas, Illinois, Kansas, Minnesota, Missouri, Nebraska, Oklahoma and West Virginia. Xanadoo is also a licensee of 700 MHz spectrum covering in excess of 168 million people that will in the future enable the delivery of broadband communications to fixed and mobile users in major markets such as New York, Boston, Philadelphia, Pittsburgh, Cleveland, Detroit, Chicago, Miami, Tampa, Phoenix, San Francisco, Sacramento, Portland and Seattle.

Contact Information

  • Contact:
    Howard E. Verlin
    Xanadoo Company
    610-934-7050