NEWARK, N.J., Feb. 21, 2012 /PRNewswire-Asia-FirstCall/ --
American Oriental Bioengineering, Inc. (NYSE: AOB) (the "Company")
today announced that on January 31,
2012, its board of directors adopted resolutions approving a
reverse stock split (the "Reverse Split") of the outstanding shares
of the Company's common stock ("Common Stock") at a ratio of one
(1) share for every two (2) shares outstanding, so that every two
(2) outstanding shares of Common Stock before the Reverse Split
shall represent one (1) share of Common Stock after the Reverse
Split.
Pursuant to the Company's Amended Articles of Incorporation
filed with the Nevada Secretary of
State, the maximum number of shares of Common Stock that the
Company is authorized to issue will also be reduced from
150,000,000 to 75,000,000. The Reverse Split will be effected
without obtaining shareholder approval pursuant to Nevada law. The effective date of the
Reverse Split with the Nevada
Secretary of State is set for Friday,
February 24, 2012. Accordingly, the New York Stock
Exchange has set the effective date of the Reverse Split for
Monday, February 27, 2012. The
Reverse Split is part of the Company's strategy to maintain the
listing of its shares on the New York Stock Exchange.
Currently, the Company has approximately 78,503,381 shares of
Common Stock outstanding. After the Reverse Split, the Company
would have approximately 39,251,867 shares outstanding. Each
stockholder's percentage ownership interest in the Company and
proportional voting power will remain unchanged after the Reverse
Split except for minor changes and adjustments resulting from
rounding of fractional interests. The rights and privileges
of the holders of Common Stock shall be substantially unaffected by
the Reverse Split.
About American Oriental Bioengineering, Inc.
American Oriental Bioengineering, Inc. is a pharmaceutical
company dedicated to improving health through the development,
manufacture and commercialization of a broad range of prescription
and over the counter products.
Safe Harbor Statement
Statements made in this press release are forward-looking and
are made pursuant to the safe harbor provisions of the Securities
Litigation Reform Act of 1995. Such statements involve risks
and uncertainties that may cause actual results to differ
materially from those set forth in these statements. The
economic, competitive, governmental, technological and other
factors identified in the Company's filings with the Securities and
Exchange Commission, may cause actual results or events to differ
materially from those described in the forward looking statements
in this press release. The Company undertakes no obligation
to publicly update or revise any forward-looking statements,
whether because of new information, future events, or
otherwise.
Contact:
Hong Zhu
646-367-1765
SOURCE American Oriental Bioengineering, Inc.