Mediabistro (MBIS) Says Reason Behind Unusual Trading Not Known
Mediabistro Inc. (Nasdaq: MBIS) made a public statement regarding recent unusual trading activity in its common stock. The Mediabistro common stock traded as high as $2.85 per share on unusually high volume last week, and closed at $1.73 on Friday, June 21, 2013.
Mediabistro does not know any reason for this unusual trading activity, and is monitoring it carefully. The Company noted that, in addition to other measures in effect that are designed to protect long-term stockholder value, Chairman and CEO Alan Meckler continues to own approximately 40% of the Companyâs outstanding stock. Also as disclosed in its filings with the Securities and Exchange Commission, Mr. Meckler has loaned the Company approximately $7.6 million secured by a first lien on all assets of the Company. This debt may be accelerated and immediately payable in full in the event of a change in control of the Company.
The Mediabistro Board of Directors reiterated its belief in the Companyâs long-term strategic plan and value. The Board intends to meet with Company management and independent advisors to evaluate the situation and any other appropriate measures it might implement to protect long-term stockholder value, including potentially a stockholder rights plan, or âpoison pill.â
The Board requests that Mediabistro stockholders not make any rash decisions regarding the Companyâs stock, and that they carefully consider all publicly-available information before buying or selling any Mediabistro securities.
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