NetNation Gives Notice of Reverse Stock Split to NASDAQ
Vancouver, BC June 3, 2003 -
NetNation Communications, Inc. (NASDAQ: NNCI) announced today that it has given the NASDAQ Stock Market notice that it intends to conduct a reverse stock split of its outstanding shares of common stock. On June 2, 2003, NetNation's board of directors recommended and approved a proposed amendment to NetNation's charter, subject to approval by stockholders, to effect a reverse stock split of NetNation's outstanding shares of common stock. If, on or before July 3, 2003, the closing price of NetNation's common stock has not met or exceeded $1.00 for at least ten (10) consecutive trading days, NetNation will be subject to de-listing from the NASDAQ SmallCap Market. NetNation believes that the reverse stock split will have the effect of increasing the per share trading price of NetNation's common stock, which could result in a share price high enough to satisfy the NASDAQ minimum bid price listing requirement.
Proxy statements regarding the proposed action were mailed to stockholders
on or about May 23, 2003. The proposal will be voted on at NetNation's 2003
Annual Meeting of Stockholders, to be held on June 12, 2003 in Vancouver, British
Columbia. If approved by stockholders, the proposal would be effective upon
filing the amended charter with the Delaware Secretary of State, as soon as
practicable following the meeting. Subject to shareholder approval and the filing
of the amendment to the Certificate of Incorporation with the Delaware Secretary
of State, the effective date of the reverse stock split will be Friday, June
13, 2003 and post-consolidation trading will commence on Monday, June 16, 2003.
Until effectiveness, the number of outstanding shares of common stock of NetNation
will remain unaffected by the board of director's action.
About NetNation Communications, Inc.
NetNation Communications, Inc. (http://www.netnation.com) is a pioneer in web hosting and domain name registration. With more than six years in operation, the Company has extended its products to offer enhanced-dedicated servers, co-location, shared hosting and managed services to clients worldwide. NetNation is recognized by industry evaluators for its excellent customer service and support, as reflected by its frequent top web host rankings worldwide. The Company was recently ranked the fourth fastest growing company in British Columbia by Business in Vancouver magazine, based on percentage revenue growth from 1997 to 2001.
This news release contains forward-looking statements within the meaning of
the "safe harbor" provisions of the U.S. Private Securities Litigation Reform
Act of 1995. These statements are based on management's current expectations
and beliefs and are subject to a number of risks and uncertainties that could
cause actual results to differ materially from those described in the forward-looking
statements. These risks and uncertainties include the following: (1) the reverse
stock split may not result in a minimum bid price of NetNation's common stock
at or above the $1.00 minimum bid price required by Marketplace Rule 4310(c)(4)
for the required ten consecutive trading days or at all; (2) the NASDAQ listing
qualifications panel may not approve NetNation's request for continued listing
on the NASDAQ SmallCap Market; (3) NetNation must maintain compliance with all
criteria for continued listing on the NASDAQ SmallCap Market; (4) technological
changes or changes in the competitive environment adversely affecting the service-packages,
market share, revenues or margins of the combined business; (5) changes in general
economic, financial or business conditions adversely affecting the combined
business or the markets in which it operates and adversely affecting future
revenues; (6) availability of financial resources to carry out plans; and (7)
authorization from third parties to carry out plans. The matters discussed in
this news release also involved risks and uncertainties described from time
to time in NetNation's filings with the Securities and Exchange Commission,
including the most recent Form 10-K filed on February 11, 2003 and Form 10-Q
filed on May 13, 2003. NetNation assumes no obligation to update any forward-looking
information contained in this news release. NetNation is a registered trademark
of NetNation Communications, Inc. All other products and company names are the
trademarks or registered trademarks of their respective owners.
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