ATLANTA -- Today, Internap Network Services
Corporation (AMEX: IIP), a leading provider of performance-based routing
solutions over the Internet, announced that it will effect a 1-for-10
reverse split of its common stock for stockholders of record as of the
close of business on July 10, 2006.
The reverse split will go into effect after market close on July 10,
2006. Internap's stock will begin trading on the American Stock
Exchange on a split-adjusted basis on July 11, 2006.
The exercise or conversion price, as well as the number of shares that
can be issued, under the company's outstanding stock options, warrants
and convertible securities, will be proportionately adjusted to reflect
the reverse stock split. The number of shares reserved for issuance
under Internap's equity compensation plans will also be reduced
Internap stockholders approved the reverse split via an amendment to the
company's articles of incorporation during the annual stockholders
meeting held on June 21, 2006.
Internap will not issue any fractional shares of its new common stock
as a result of the reverse split. Instead, the company will pay cash for
the value of the fractional shares to the holders thereof. Stockholders
who hold their shares in brokerage accounts or "street name" will not be
required to take any action to effect the exchange of their shares.
Stockholders of record who hold share certificates will receive a letter
of transmittal requesting that they surrender their old stock
certificates for new stock certificates reflecting the adjusted number
of shares as a result of the reverse stock split. American Stock
Transfer & Trust Company will serve as Internap's transfer and exchange
agent, implementing the exchange of stock certificates in connection
with the reverse split.
Internap Network Services Corp. (Nasdaq: INAP)