MagStar Technologies, Inc. (BULLETIN BOARD: MGST) (the "Company") announced today that it has effected a 1 for 2,000 reverse stock split as of the close of business on February 5, 2008. Pursuant to the reverse stock split, each 2,000 shares of the Company's common stock were converted into one share of common stock and owners of fewer than 2,000 shares of common stock as of the close of business on February 5, 2008 are entitled to receive cash of $0.425 per pre-reverse stock split share. The reverse stock split is a part of the "going private" transaction the Company is completing, whereby the Company intends to file a Form 15 with the Securities and Exchange Commission to terminate its filing obligations under the Securities and Exchange Act of 1934.
Although the reverse stock split occurred as of the close of business on February 5, 2008, the Company does not anticipate that the reverse stock split will be reflected on the Over-the-Counter Bulletin Board ("OTCBB") until later in the week, likely Thursday, February 7 or Friday, February 8. Until the appropriate adjustment is made on the OTCBB, investors should take caution in trading the Company's securities and should be aware that any such trades in the Company's securities will be reflected on a pre-reverse stock split basis, even though the reverse stock split has become effective.
About MagStar
MagStar is a manufacturer of conveyors, motion control devices, spindles, and custom servo motors. MagStar's primary product is Quickdraw brand conveyor systems, used in factory and laboratory automation. MagStar also manufactures customized motion control products (custom servo motors and linear slides), disposable based medical centrifuges and devices, and its other proprietary product, oil centrifuges. Products manufactured by MagStar are used in high tech manufacturing, laboratory and pharmaceutical processes, electronics assembly, surgical procedures, and laboratory processes.
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