IRWINDALE, CA, Dec. 3, 1998 (PRIMEZONE) -- Amerigon Incorporated (Nasdaq: ARGNA), today announced that its Board of Directors approved a 1 for 5 reverse stock split. Consummation of the reverse stock split is subject to shareholder approval and is not expected to be effected until January 1999. If consummated, the reverse stock split will reduce the number of outstanding shares of Class A Common Stock to approximately 2.51 million, including 600,000 escrowed shares which are expected to be converted to Class B Common Stock on April 30, 1999. If consummated, the reverse stock split would also affect the outstanding Class A Warrants and other outstanding warrants and options of the Company by reducing the number of shares subject to such warrants and options on a 1 for 5 basis and increasing the exercise price by multiplying the current exercise price by 5.
The Board of Directors approved the reverse stock split as part of its strategy to return to compliance with the $1.00 minimum bid price requirement for continued listing on the Nasdaq Small Cap Market. The Company's Class A Common Stock has been below the minimum bid requirement for some time and the Nasdaq staff has proposed to delist the Class A Common Stock. The Company requested continued listing and attended a Nov. 13, 1998 hearing panel on that request, and proposed to effect a reverse stock split as part of a compliance plan. There can be no assurance that the Nasdaq will not delist the Company's securities even if the reverse stock split is effected. The Company will not receive notice prior to the delisting.
The Company continues its transition from research and development into production, recently announcing in October that it had been selected by Johnson Controls to supply the Amerigon's Climate Control Seat(tm) (CCS(tm)) system to be installed in seating systems for a leading North American auto manufacturer, starting in the 2000 model year. The Company continues to receive positive response from manufacturers around the world and announced on November 5, 1998, that it has received development contracts from leading European automotive companies to integrate the CCS(tm) system into their seats in preparation for possible launches in the 2001 and 2002 model years.
Amerigon, an emerging player in the global automotive industry, develops and markets proprietary high-technology products for the automotive OEM. In addition to the CCS(tm) system, the Company's products include its proprietary AmeriGuard(tm) Radar System to extend the driver's field of view in such vehicle applications as enhanced parking aids, back-up warning systems, and side object detection.
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This release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. Such statements are based on management's current expectations and are subject to a number of factors and uncertainties which could cause actual results to differ materially from those described in the forward-looking statements, including, without limitation, demand for the Company's products, uncertainties in the development of high technology products, risks and delays in obtaining customer orders, technological change, competition and other risks and uncertainties that are detailed in the Company's Annual Report on Form 10-K and other reports filed by it with the Securities and Exchange Commission.