|By Marketwired .||
|August 14, 2013 04:38 PM EDT||
NORFOLK, NE -- (Marketwired) -- 08/14/13 -- Supertel Hospitality, Inc. (NASDAQ: SPPR), announced today a 1-for-8 reverse split of its common stock. The reverse stock split will become effective at 5:00 p.m. on August 14, 2013. The company's common stock will be traded on a split-adjusted basis when the market opens on August 15, 2013. Following the reverse stock split, the common stock will continue to be reported on the Nasdaq Global Market under the symbol "SPPR," and the new CUSIP number for the common stock will be 868526401.
The reverse stock split was approved by the company's shareholders at the company's annual meeting of shareholders held on May 21, 2013 and the company's board of directors was authorized to implement a reverse stock split and determine the ratio of the split within a range set forth in the definitive proxy statement for the meeting. The company board of directors has determined to fix the ratio for the reverse stock split at 1-for-8.
At the effective time of the reverse stock split, every eight shares of the company's common stock issued and outstanding immediately prior to the effective time of the reverse stock split will be combined into one share. No fractional shares will be issued in connection with the reverse stock split, and shareholders who otherwise would be entitled to a fractional share will receive, in lieu thereof, a cash payment based on the volume weighted average price of the company's common stock during the five trading days prior to, and excluding, August 14, 2013, as reported on the Nasdaq Global Market.
The company's authorized shares of common stock under its articles of incorporation remain unchanged at 200 million shares. The par value of the company's common stock remains unchanged at $0.01 per share. Following the effective time of the reverse stock split, the company will have a total of 2,893,705 shares of common stock outstanding.
Proportional adjustments will be made at the effective time of the reverse stock split to the company's outstanding stock options and other equity awards and to the company's equity compensation plans, to the voting rights and conversion price of the company's 6.25% Series C Cumulative Convertible Preferred Stock and to the exercise price and number of outstanding company warrants exercisable for the purchase of common stock.
Shareholders who hold shares of the company's common stock in "street name" will not be required to take any action in connection with the reverse stock split. Shareholders who hold shares of the company's common stock in certificated form will receive instructions from the company's transfer agent, American Stock Transfer & Trust company LLC, regarding the exchange of outstanding pre-reverse stock split stock certificates.
About Supertel Hospitality, Inc.
Supertel Hospitality, Inc. (NASDAQ: SPPR) is a self-administered real estate investment trust that specializes in the ownership of select-service hotels. The company currently owns 74 hotels comprising 6,422 rooms in 21 states. Supertel's hotels are franchised by a number of the industry's most well-regarded brand families, including Hilton, Choice and Wyndham. For more information or to make a hotel reservation, visit www.supertelinc.com.
Ms. Krista Arkfeld
Director of Corporate Communications