SMTEK Stockholders OK Sale of Common Stock

Stockholders for SMTEK International in Thousand Oaks have approved the sale of 11.2 million shares of common stock to TMW Enterprises for $4.5 million.

TMW is controlled by Thomas M. Wheeler, who is also SMTEK’s largest stockholder.

In a special meeting, the stockholders also approved an amendment to SMTEK’s Certificate of Incorporation that institutes a reverse split of the company’s common stock of 1 share for each 20 shares that are currently outstanding. The move would reduce the authorized common stock to 3.75 million shares.

Company officials said the purpose of the common stock sale is to strengthen the company’s balance sheet by increasing stockholders’ equity and cash reserves. A portion of the proceeds will be used to retire debt, company officials said.

The 1-for-20 reverse stock split is intended to stimulate greater interest in the company’s common stock on the part of the financial community and the investing public.

SMTEK provides electronics manufacturing services to manufacturers in the computer, telecommunications, instrumentation, medical, industrial and aerospace industries. The company also fabricates multilayer printed circuit boards for use in the computer, communications and instrumentation industries.