NVE Announces Reverse Stock
Split and Buyback
EDEN PRAIRIE, Minn.--November 11, 2002--NVE Corporation (OTCBB:
NVEC) announced that it will execute a one-for-five reverse stock
split on its common shares effective as of November 22, 2002 and
that its Board of Directors has authorized the repurchase of up
to 50,000 post-split shares of the company's common stock, commencing
at any time thereafter and expiring not more than six months thereafter.
The company believes these steps will help the company position
itself to satisfy the initial requirements for listing on the NASDAQ
SmallCap Market, which include a minimum bid price of $4 per share.
There is no assurance that the company will be able to list its
common stock on the NASDAQ SmallCap Market.
Under the terms of the reverse split, common shares held by shareholders
of record at the close of business November 21, 2002 will be automatically
adjusted as of November 22, 2002 so that each five shares held as
of the record date will equate to one share of NVE common stock.
As a result of the reverse split, the company will begin trading
November 22, 2002 under the symbol "NVCR." NVE had approximately
20.8 million common shares outstanding as of October 25, 2002.
The company may buy back shares from time to time in the open market,
subject to general market and other conditions. The timing and amount
of any shares repurchased will be determined by the company's management
based on its evaluation of market conditions, applicable securities
regulations, as well as other factors. The company plans to fund
repurchases with working capital. The repurchase program does not
obligate the company to acquire any specific number of shares and
may be suspended at any time.
NVE is a leader in the practical commercialization of "spintronics,"
which many experts believe represents the next generation of microelectronics.
NVE's products include sensors and couplers which revolutionize
data acquisition and transfer.
Statements used in this press release that relate to future
plans, events, financial results or performance are forward-looking
statements that are subject to certain risks and uncertainties including,
among others, such factors as competitive coupler threats, industry
economic trends, our ability to meet stringent customer technical
requirements, as well as the risk factors listed from time to time
in the company's filings with the SEC, including the company's Annual
Report on Form 10-K and other periodic reports filed with the SEC.
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