Press Release
QSound Announces Reverse Stock Split
Calgary, Alberta - July 6, 2001 - QSound Labs, Inc.
(NASDAQ: QSND), a leader in the development of audio and e-commerce
technology and products, today announced that its Board of Directors has
approved a 1-for-4 reverse split of the Company's outstanding common
stock. This decision was authorized by an overwhelming 98% of voting
shareholders at the Company's recent Annual & Special Meeting.
"We believe that the reverse stock split will help preserve the liquidity
and marketability of our common stock,'' stated David Gallagher, the
Company's Chairman and Chief Executive Officer. "Management views this as
one facet of the overall plan to improve shareholder value. Our cost
control measures took effect in the first quarter and we expect those
benefits to continue for the remainder of the year. We also expect revenue
growth to occur as new products come online in the third quarter. Our
intellectual property portfolio continues to grow; the US Patent Office
recently advised that our patent applications for QSurround®, QMSS™,
stereo expansion for headphones and 3D positioning for teleconferencing
technologies have been allowed."
The reverse stock split will become effective and apply to shareholders of
record, immediately prior to the open of trading on the Nasdaq Small Cap
Market on Monday, July 9, 2001. On that date, the Company's common stock
will begin trading on a reverse split basis under the temporary trading
symbol QSNDD for a period of 20 trading days to reflect the post-split
status of the stock. At the end of this period, the ticker symbol will
revert back to QSND. Upon the effectiveness of the reverse stock split, 4
shares of common stock will be converted and reclassified as one share of
post-split common stock, and each existing stock certificate will
represent one-fourth the number of shares shown thereon. Fractional shares
will be rounded up.
This release contains
forward-looking statements within the meaning of the Private Securities
Litigation Act of 1995 concerning, among other things, future financial
results. Investors are cautioned that such forward-looking statements
involve risk and uncertainties, which could cause actual results,
performance or achievements of the Company, or industry results to differ
materially from those reflected in the forward-looking statements. Such
risks and uncertainties include, but are not limited to, risks associated
with the Company's ability to carry out its business strategy and
marketing plans, including availability of sufficient resources for the
Company to do so timely and cost effectively, the Company's ability to
maintain its listing on the Nasdaq SmallCap Market, commercialization of
the Company's technologies, consumer acceptance of the Company's products
and services, dependence on the performance of third parties who have
licensed the Company's technologies, dependence on intellectual property,
uncertainties relating to product development and commercial introduction,
manufacturing uncertainties, rapid technological change and competition,
continued growth of the Internet and other risks detailed from time to
time in the Company's periodic reports filed with the Securities and
Exchange Commission. Forward-looking statements are based on the current
expectations, projections and opinions of the Company's management, and
the Company undertakes no obligation to publicly release the results of
any revisions to such forward-looking statements which may be made, for
example to reflect events or circumstances after the date hereof or to
reflect the occurrence of unanticipated events.