In previous posts ("Penny Ante Arbitrage" and "Penny Ante Arbitrage Update") I mentioned that I bought 749 shares of Asure Software (Nasdaq Capital Market: ASUR) at between 17 and 18 cents per share in several different accounts, in the hopes of getting them cashed out at 36 cents each after the company's proposed 750-1 reverse split (the first step in the company's plan to go private). Today Asure announced that it has mailed out the proxies for this deal and will be holding a shareholder meeting to vote on it on June 2nd ("Asure Software Provides Update on Plan to Take Company Private"). From the press release:
"The plan to privatize the Company remains on track. Proxies were mailed to Asure shareholders this week and assuming the shareholders approve the proposal, the Company will become private in June 2009. The privatization will enable the Company to save in excess of $1M a year by suspending public reporting. However, we intend to keep remaining shareholders informed and continue an open dialogue as we execute our strategy. These savings, combined with our positive outlook on revenue and other recent expense reductions, will put us on a solid path to build a profitable business in the very near future," commented Richard Snyder, Asure's Chairman and Chief Executive Officer.
Under the terms of the proposed transaction, shareholders owning fewer than 750 shares of the Company's common stock immediately prior to the date the transaction takes effect would be entitled to receive cash of $0.36 per share. Shareholders owning 750 shares or more would continue to hold their shares following the completion of the transaction.
If you own shares of ASUR, don't forget to vote.