Prior to the beginning of this aggressive buyback program, Somatic Systems had approximately 8 billion shares of common stock issued and outstanding. Cancellation of this round of shares brings the structure down to approximately 6 billion shares, eliminating approximately 25% of the company's stock.
This 1.1 billion share cancellation is the largest share acquisition and retirement action completed by Somatic Systems so far, exceeding the previous record acquisition and cancellation of 1 billion shares completed on August 25 -- and the company has stated its intention to continue to acquire and cancel still more shares in the coming weeks. The company also retired 50 million shares last week.
These dramatic eliminations of 2.15 billion shares have all occurred within the 20 days since Somatic Systems announced it would begin a massive share acquisition and cancellation program, to restructure the company's capital and grow share price without conducting a reverse split of the stock.
Of the shares retired today, the restricted shares had all completed the process of becoming free-trading. Thus this cancellation avoided a 33% increase in the stock's float.
"We are pleased with the progress of our share retirement program, and we hope it shows shareholders we are serious about building and maintaining the health of our stock structure and increasing share value," stated Somatic Systems CEO Steven Aronstein. "We continue to seek additional opportunities to remove as many shares from the marketplace as possible."
The company stated it would announce additional cancellations as they happen in the coming weeks.
About Somatic Systems, Inc.
Somatic Systems is the worldwide center for Clinical Somatics, the groundbreaking drug-free, non-surgical approach to pain relief. This proprietary system uses natural, non-invasive movement techniques -- conducted through one-hour hands-on sessions, therapeutic exercises classes, and home exercises lasting as little as 5 minutes a day -- to relieve pain and limitation resulting from accident, trauma and repetitive stress, including back pain, knee pain, joint problems, carpal tunnel syndrome, TMJ, scoliosis, bursitis, sciatica, headaches, tendonitis and more. Clinical Somatics™ also provides performance gains and injury prevention for casual and professional athletes.
Somatic Systems is pursuing a 3-part growth strategy, consisting of a nationwide rollout of pain management Somatics Clinics; increased production and distribution of therapeutic videos, books, and other retail self-help Somatics Products; and expanded Somatics Training Programs to supply Clinic practitioners serving medical and orthopedic professionals and institutional and corporate programs. The company operates a suite of web sites offering Somatics information, products, resources, and opportunities, at www.somatics.org.
Safe Harbor Act: This release includes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 that involves risks and uncertainties including, but not limited to, the impact of competitive products, the ability to meet customer demand, the ability to manage growth, acquisitions of technology, equipment, or human resources, the effect of economic business conditions, and the ability to attract and retain skilled personnel. The Company is not obligated to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.
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SOURCE: Somatic Systems, Inc.