Overland Storage, Inc. will effect a one-for-three reverse stock split of the Company’s common stock effective on December 8, 2009. Trading of Overland Storage’s common stock on the NASDAQ Global Market will begin on a split-adjusted basis at the open of trading on December 9, 2009.
Overland Storage, Inc.’s shares will continue to trade on the NASDAQ Global Market under the symbol ‘OVRL’ with the letter ‘D’ added to the end of the trading symbol for a period of 20 trading days to indicate that the reverse stock split has occurred.
As a result of the reverse stock split, every three shares of Overland Storage’s common stock issued and outstanding immediately prior to the effective time will be combined into one share of common stock.
The number of shares of Overland Storage common stock issued and outstanding will be reduced from approximately 19,021,383 pre-split to approximately 6,340,461 post-split.
Letters of transmittal are expected to be sent to shareholders shortly after the effectiveness of the reverse stock split. No action by Overland Storage’s shareholders is required prior to receipt of these letters.
Overland Storage also reported that it granted an inducement stock option to Gregory Short, director, commodities management, who can purchase up to 50,000 shares of its common stock. The option was granted as an inducement material to employment in accordance with NASDAQ Listing Rule 5635(c).