Woodroast issuing 3-for-1 split for stock dividends

Nation's Restaurant News, Jan 8, 1996

EDEN PRAIRIE, Minn. -- Woodroast Systems Inc., in a reverse move on a reverse split made eight months ago, said it is issuing three shares of stock as a dividend to holders of each share of outstanding common stock as of Jan. 4. The new distribution, set for Jan. 18, will bring the current 750,000 shares up to a total of 2.25 million shares.

In May 1995 the company went into a 1-for-3 reverse split for its stock, but it did not adjust its warrants, which then effected a value of one-third of a share of common stock. Woodroast acted at that time to meet capitalization requirements necessary to maintain its listing on the Nasdaq Smallcap Market, where it trades under the symbol WRSI.

"This 3-for-1 split is an opportunity to return the company's stock and warrants to the 1-for-1 status that was originally established in the initial public offering," said Woodroast president and chief executive Sheldon F. Jacobs. The warrant will provide the right to purchase one share of common stock at $6. Woodroast operates units in St. Louis Park, Minn., and in Rockville, Md., under its Northwoods restaurant concept.