Starco Brands’ Reverse Stock Split Becomes Effective
New Share Base Expected to Enhance Corporate and Capital Market Flexibility
SANTA MONICA, Calif., Feb. 20, 2018 (GLOBE NEWSWIRE) -- The previously announced1 1-for-30 reverse stock split of shares of Starco Brands (OTC:STCB) became effective today. As a result of the reverse stock split, the previous base of approximately 72.5 million shares has been reduced to approximately 2.4 million shares. The Company’s common stock par value and shareholders’ equity remain unchanged, as does the number of authorized common shares.
Commenting on the purpose of the reverse stock split, Starco Brands’ CEO Ross Sklar said, “We continue to have bold plans for the future of Starco Brands, and we believe this move will give us greater flexibility to take advantage of corporate opportunities and/or financings should the opportunities arise, without having to increase the number of shares authorized to an unmanageable level. In addition, we believe the reverse stock split could be an integral part of our plan to eventually have the shares meet the listing requirements for NASDAQ or other exchanges.”
Mr. Sklar continued, “Six months ago, the Company unveiled a new business model, based on a strategy to introduce a wide and diverse range of innovative, behavior-changing consumer brands in categories where we have proven expertise, starting with breatheTM, an award-winning line of household products featuring our revolutionary BreatheSafeTM technology.
“In 2018, the transformation is accelerating, and we look forward to sharing our plans for new brands, new categories and new retail partners, all put together by a new, world-class management team. The reverse stock split is an important element of building the platform on which Starco Brands will grow, and by which its shareholders will be rewarded.”
1Additional details about the purpose and effect of the reverse stock split can be found in the Form 14-C filed with the Securities and Exchange Commission on January 29, 2018.
About Starco Brands
Starco Brands (formerly Insynergy) was incorporated in 2010 to engage in direct response marketing of consumer products via television, e-commerce and retail. In September 2017, the Company embarked on a new strategic mission, at the center of which is a license agreement with The Starco Group, a Los Angeles-based manufacturer of consumer household products. The company is engaged in the conception, design, development and marketing of a wide range of consumer household products across multiple categories and distribution channels. For more information, investors should visit www.starcobrands.com.
About The Starco Group
The Starco Group was founded in 2010 by Ross Sklar and today is a large-scale private label manufacturer of a wide range of consumer household aerosol categories, including cleaning solutions, air care, spirits and beverages, food preparation, paints, coatings, adhesives, arts & crafts, seasonal, personal care cosmetics and other categories. For more information, visit www.thestarcogroup.com.
Cautionary Note on Forward-Looking Statements
This press release may include forward-looking information and statements within the meaning of federal securities laws. Except for historical information contained in this release, statements in this release may constitute forward-looking statements regarding assumptions, projections, expectations, targets, intentions or beliefs about future events. Statements containing the words “may”, “could”, “would”, “should”, “believe”, “expect”, “anticipate”, “plan”, “estimate”, “target”, “project”, “intend” and similar expressions constitute forward-looking statements. Forward-looking statements involve known and unknown risks and uncertainties, which could cause actual results to differ materially from those contained in any forward-looking statement. Forward-looking statements are based on management’s current belief, as well as assumptions made by, and information currently available to, management.
While the Company believes that its expectations are based upon reasonable assumptions, there can be no assurances that its goals and strategy will be realized. Numerous factors, including risks and uncertainties, may affect actual results and may cause results to differ materially from those expressed in forward-looking statements made by the Company or on its behalf. Some of these factors include, but are not limited to, risks related to the Company’s liquidity, the substantial uncertainties inherent in the acceptance of existing and future products, the difficulty of commercializing and protecting new technology, the impact of competitive products and pricing, general business and economic conditions, risks associated with the expansion of our business including the implementation of any businesses we acquire, factors discussed in our public filings, including the risk factors included in the Company’s most recent Annual Report on Form 10-K, Quarterly Report on Form 10-Q and other periodic reports. Except as required by applicable law, including the securities laws of the United States and the rules and regulations of the Securities and Exchange Commission, the Company is under no obligation to publicly update or revise any forward-looking statement after the date of this release whether as a result of new information, future developments or otherwise.
Released February 20, 2018