Winthrop Realty Trust Announces One for Ten Reverse Stock Split
November 10 2008 - 5:52PM
PR Newswire (US)
BOSTON, Nov. 10 /PRNewswire-FirstCall/ -- Winthrop Realty Trust
(NYSE: FUR) today announced that its Board of Trustees has approved
a reverse split of Winthrop's common shares of beneficial interest
at a ratio of one-for-ten shares, to take effect after the close of
the market on Friday, November 28, 2008 with the first post-split
trading day to be December 1, 2008. Pursuant to Winthrop's
Declaration of Trust, the reverse split does not require any
further action on the part of Winthrop's Board of Trustees or
shareholders. Michael L. Ashner, Winthrop's Chairman and Chief
Executive Officer stated "Due in part to the low market price of
our common shares and the high number of shares outstanding, the
Board of Trustees believes it is in the best interests of Winthrop
and its shareholders to effect the reverse stock split which should
increase the per share price for our common shares which we believe
will make our common shares more attractive to a broader range of
institutional and other investors as we have been advised that the
current market price of our common stock may affect its
acceptability to certain institutional investors, professional
investors and other members of the investing public." The reverse
split will reduce the number of Winthrop's outstanding common
shares from approximately 78.7 million to approximately 7.87
million shares. No fractional shares will be issued in connection
with the reverse stock split. Cash will be issued in lieu of
fractional shares. The exercise price and the number of shares of
common stock issuable under the Company's outstanding options will
be proportionately adjusted to reflect the reverse stock split. The
number of shares issuable upon conversion of Winthrop's Series B-1
preferred shares will be proportionately reduced from approximately
13.4 million to approximately 1.34 million to reflect the reverse
stock split and the conversion price will increase to $45.00 from
$4.50 per Series B-1 preferred share. Existing shareholders holding
certificates representing Winthrop's common shares will receive a
Letter of Transmittal from Winthrop's transfer agent with specific
instructions regarding the exchange of shares. Existing
shareholders who hold their shares in "street name" need not take
any action with respect to the reverse split. National City Bank is
Winthrop's transfer agent and will act as the exchange agent for
the purpose of implementing the exchange of stock certificates in
connection with the reverse split. Winthrop Realty Trust is a
NYSE-listed real estate investment trust (REIT) headquartered in
Boston, Massachusetts. Additional information on Winthrop Realty
Trust is available on its Web site at http://www.winthropreit.com/.
"Safe Harbor" Statement under the Private Securities Litigation
Reform Act of 1995. With the exception of the historical
information contained in this news release, the matters described
herein contain "forward-looking" statements that involve risk and
uncertainties that may individually or collectively impact the
matters herein described. These are detailed from time to time in
the "Risk Factors" section of the Company's Annual Report of Form
10-K/A for the year ended December 31, 2007, as may be updated or
supplemented in the Company's Form 10-Q filings which discuss the
factors that could adversely affect the Company's results. Further
information relating to the Company's financial position, results
of operations, and investor information is also contained in the
Company's reports filed with the SEC, which reports are available
for download at our website http://www.winthropreit.com/ or at the
SEC website http://www.sec.gov/. DATASOURCE: Winthrop Realty Trust
CONTACT: Investor or Media Inquiries, Beverly Bergman of Winthrop
Realty Trust, +1-617-570-4614, Web Site:
http://www.winthropreit.com/
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