UTStarcom Announces Results of Extraordinary Meeting of Shareholders and Effectiveness of One-for-Four Reverse Share Split

HANGZHOU, China, June 28, 2022 (GLOBE NEWSWIRE) -- UTStarcom (“UT” or the “Company”) (NASDAQ: UTSI), a global telecommunications infrastructure provider, today announced the official results of its extraordinary meeting of shareholders, held on June 28, 2022 at 10:00 a.m. China Standard Time in Hangzhou, China. Shareholders cast their votes as described below:

1. Shareholders approved, effective on June 28, 2022, as of 4:30 p.m. 2022, Eastern Time, as an ordinary resolution, in accordance with Article 49 of the Company's Second Amended and Restated Memorandum and Articles of Association, that the authorized share capital of the Company be amended by the consolidation of the existing 250,000,000 Ordinary Shares of US$0.00375 par value each into 62,500,000 Ordinary Shares of US$0.015 par value each, such that:
   
   
   (i) the authorized share capital of the Company is amended to US$943,750 divided into 62,500,000 Ordinary Shares of a par value of US$0.015 each and 5,000,000 Preference Shares of a par value of US$0.00125 each;
   
   
   (ii) each existing issued 4 Ordinary Shares of US$0.00375 par value each be consolidated into 1 Ordinary Share of US$0.015 par value each and the register of members of the Company be updated accordingly; and
   
   
   (iii) any fractions of a share that result from the consolidation described above be automatically repurchased by the Company at the Market Price (as defined in the Company's Second Amended and Restated Articles of Association) of such fractions on the date of this Extraordinary Meeting.
   
   
   
2. Shareholders approved, effective on June 28, 2022, as of 4:30 p.m. Eastern Time, as a special resolution, that the Second Amended and Restated Memorandum and Articles of Association of the Company currently in effect be amended and restated by their deletion in their entirety and the substitution in their place of the Third Amended and Restated Memorandum and Articles of Association.
   
   

On January 27, 2022, the Company received formal notice dated January 24, 2022 from NASDAQ stating that the Company was not in compliance with NASDAQ’s Listing Rules of minimum bid price. The Company has 180 days to regain compliance with the listing standards. To regain compliance, the closing bid price of the Company’s Ordinary Shares must be at least $1.00 per share for a minimum of ten consecutive business days during the stated 180-day period.