December 02, 2005
Silicon Graphics has announced it intends to postpone its annual meeting of stockholders until early 2006 in order to include an additional proposal for stockholders to approve an amendment to the Company's Restated Certificate of Incorporation which will effect a reverse stock split of the common stock of the Company. The annual meeting was originally scheduled to be held on Tuesday, December 6, 2005.
The Company is currently considering a reverse stock split at ratios in the range of 1-for-10 to 1-for-20. The Company believes that a reverse stock split will improve the trading characteristics of its common stock as well as facilitate efforts by the Company to seek additional investment or strategic alternatives with the goal of preserving and creating value for the benefit of stockholders and creditors.
The Company expects to file an amended proxy statement with the Securities and Exchange Commission (SEC) in the near future and will distribute this proxy statement to its stockholders after the applicable review period has expired.
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