Safeguard Scientifics' stock undergoes 1:6 reverse split

Effective today, August 27, shares of common stock of Safeguard Scientifics, Inc. (NYSE:SFE), a holding company that builds value in growth-stage life sciences and technology companies, have been split 1-for-6. Safeguard shares will continue to trade on the New York Stock Exchange under the symbol SFE. With the transaction, Safeguard has been assigned a new CUSIP number – 786449 20 7.

“Our reverse split takes effect today with the commencement of pre-market trading,” said Peter J. Boni, Safeguard President and Chief Executive Officer. “We believe this transaction will broaden Safeguard’s appeal to institutional investors, and reduce transaction costs and certain administrative expenses. Moreover, the reverse split comes at a time when Safeguard’s strategic execution and focus on fundamentals are strengthening the company’s financial position, creating value in our portfolio companies and enhancing long-term shareholder value.”

Safeguard shareholders will receive one new share of Safeguard common stock for every six shares held. The reverse split, which was approved by Safeguard shareholders in July 2008, will reduce the number of shares of outstanding common stock from approximately 122.3 million to approximately 20.4 million. The number of authorized shares of common stock will be reduced from 500.0 million to approximately 83.3 million. Proportional adjustments will be made to Safeguard’s convertible debentures, stock options, deferred stock units, equity compensation plans and other equity incentive awards. In lieu of fractional shares, shareholders will receive cash. Cash payments for fractional shares will be determined on the basis of the stock’s average closing price for the period August 13, 2009 to August 26, 2009, adjusted for the reverse stock split. The reverse stock split will not negatively affect any of the rights that accrue to holders of Safeguard common stock, convertible debentures, options, deferred stock units or other securities convertible into the company’s common stock.

Shareholders with certificated shares are required to exchange their stock certificates for new book entry shares representing the appropriate number of shares of common stock resulting from the split. Safeguard’s transfer agent, BNY Mellon Shareowner Services, is the exchange agent for the reverse split and will distribute a letter of transmittal to shareholders with instructions for surrendering old stock certificates.

http://www.safeguard.com/