NANJING, China, Nov. 9 /Xinhua-PRNewswire-FirstCall/ -- Ever-Glory International Group, Inc. (OTC Bulletin Board: EGLY) (“Ever-Glory,” “the Company”), a leading apparel manufacturer in the People’s Republic of China (“PRC”), announced today that its board of directors has approved a 1-for-10 reverse stock split of its common stock, effective Tuesday, November 20, 2007.
“We believe the board’s decision to reverse split our common stock is in the long-term interest of our Company and our shareholders, as we prepare to apply to have our shares listed on a major stock exchange,” said Mr. Yihua Kang, Chief Executive Officer of Ever-Glory. “Attracting investor interest in our stock is important to our Company’s overall strategy, and management believes that appropriate positioning of our stock on a senior exchange will help to accomplish this goal.”
As a result of the reverse split, owners of the Company’s common stock will receive one new share of Ever-Glory common stock in exchange for every 10 shares of Ever-Glory common stock. The reverse stock split will affect all shares of common stock, stock options and warrants of Ever-Glory that are outstanding immediately prior to the effective time of the reverse stock split. Any fractional shares resulting from the exchange will be rounded upward to the next higher whole share of new common stock. Currently, the number of shares of the Company’s common stock outstanding is approximately 113.8 million. After the split, approximately 11.4 million shares will be outstanding.
About Ever-Glory International Group, Inc.
Ever-Glory International Group is a U.S. publicly traded company engaged in international garment manufacturing for well-known middle- to high-grade casual, outer, and sportswear brands. The company’s U.S. headquarters is based in Los Angeles, CA, although Ever-Glory also owns three full subsidiary companies, Goldenway Nanjing Garments Co. Ltd., Nanjing New-Tailun Garments Co, Ltd and Nanjing Catch-Luck Garments Co., Ltd. Ever-Glory has strategic business partners in countries including China, Europe and the U.S. The Company cooperates with well-respected garment retailer chains such as Itochu, Shinko, Debenhams, Next, C&A, Itoyokado and others in handling high- and middle-grade casual wear and sportswear. The company entered into production and sales cooperation agreements with a number of internationally famous brands such as Matalan, Eddie Bauer, Best-Seller, BB Dakota and others. Ever-Glory employs more than 1,800 people. At present, the market distribution is segmented as 15 % in Japan, 54% in Europe, 27 % in United States and 3% in China. For more information about Ever-Glory International Group, please visit: http://www.everglorygroup.com .
This press release contains forward-looking statements within the meaning of the federal securities laws, including, without limitation, statements regarding the following: the reverse stock split and the impact and effects of the reverse stock split. These statements are subject to risks and uncertainties that may cause actual results and events to differ materially. A detailed discussion of other risks and uncertainties that could cause actual results and events to differ materially from such forward-looking statements is included in Ever-Glory’s most recent filings with the Securities and Exchange Commission. Ever-Glory undertakes no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this press release.
