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CE SOFTWARE HOLDINGS, INC.
1801 Industrial Circle
West Des Moines, Iowa 50165
NOTICE AND INFORMATION STATEMENT TO STOCKHOLDERS
REGARDING CORPORATE ACTION TO BE TAKEN ON JUNE 29, 1997.
To Our Stockholders:
Holders of a majority of the outstanding voting shares of the common
stock of CE Software Holdings, Inc., a Delaware corporation (the "Company"),
have consented to the following action to be taken on June 29, 1997:
Adoption of an Amendment of the Restated Certificate of Incorporation
of the Company, the effect of which is the conversion of all outstanding shares
of par $.02 voting common stock of the Company ("par $.02 Common Stock") into
shares of par $.10 voting common stock of the Company ("par $.10 Common Stock")
at a conversion ratio of five (5) shares of par $.02 Common Stock for one (1)
share of par $.10 Common Stock (the "Reverse Split"). The Reverse Split was
proposed by the Board of Directors in response to notification by Nasdaq
National Market ("Nasdaq") that the Company is subject to being delisted from
Nasdaq because the per share price of its $.02 Common Stock has fallen below
$1.00.
The foregoing matter is more fully described in the accompanying
Information Statement. The Company is not soliciting proxies in connection with
the above corporate action, as no further stockholder action is required. Your
attention is directed to the Information Statement.
By Order of the Board of Directors,
/s/ Richard A. Skeie
Richard A. Skeie, President
West Des Moines, Iowa 50265
June 9, 1997
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INFORMATION STATEMENT
OF
CE SOFTWARE HOLDINGS, INC.
1801 Industrial Circle
West Des Moines, Iowa 50265
WE ARE NOT ASKING YOU FOR A PROXY
AND YOU ARE REQUESTED NOT TO SEND US A PROXY
June 9, 1997
This Information Statement relates to corporate action to be taken by
CE Software Holdings, Inc. (the "Company") on June 29, 1997, as approved by
stockholder consent in May 1997, authorizing a reverse stock split.
Consents have been solicited from certain stockholders of record at the close of
business on May 14, 1997 (the "Record Date"). At that date, the outstanding
voting securities of the company consisted of 5,627,028 shares of $.02 par value
voting common stock ("par $.02 Common Stock"). Consents were solicited only
from holders of par $.02 Common Stock who were readily available. Consents
were solicited only until a sufficient number of consents were obtained to
constitute a simple majority of the shares of par $.02 Common Stock outstanding
as of the Record Date.
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
The following table sets forth, as of April 30, 1997, the number and
percentages of outstanding shares of the Company's par $.02 Common Stock
beneficially owned by each current director and by all directors and current
officers as a group or by any person who is known to hold more than five percent
of the Company's outstanding stock. Other than the two directors listed below
(Richard A. Skeie and John S. Kirk) the Company is aware of only one other
stockholder (Donald M. Brown) claiming to hold more than five percent of the
Company's outstanding stock.
<TABLE>
<CAPTION>
No. of Shares
Name of Beneficial Owner Beneficially Owned Percent of Class
<S> <C> <C>
Donald M. Brown (1) 745,100 13.2%
Richard A. Skeie (1) 681,532 12.0%
John S. Kirk (1), (2) 585,100 10.3%
Sheldon T. Fleck (3) 122,555 2.6%
David J. Lundquist (3) 55,055 1.0%
Stanford H. Goodman 0 0.0%
Total all Officers & Directors
as a Group (7 persons) 1,452,642 25.6%
</TABLE>
(1) The address of Mr. Skeie, Mr. Brown, and Mr. Kirk is c/o CE Software
Holdings, Inc., P.O. Box 65580, West Des Moines, IA 50265.
(2) Mr. Kirk's total includes 220,000 shares registered in the name of a family
investment partnership of which Mr. Kirk and his children are partners.
(3) Includes an aggregate of 37,610 shares, underlying stock options,
exercisable within 60 days, from the date of this table (4/30/97). These
options are held as follows: Mr. Fleck, 22,555, and Mr. Lundquist, 15,055.
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Section 16(a) of the Securities Exchange Act of 1934 requires the
Company's officers and directors, and persons who own more than ten percent of
the Company's common stock, to file reports of ownership and changes in
ownership with the Securities and Exchange Commission. Officers, directors and
greater than ten percent stockholders are required by SEC regulation to furnish
the Company with copies of all Section 16(a) forms they file.
Based solely on its review of the copies of such forms received by it, or
written representations from certain reporting persons that no Forms 5 were
required for those persons, the Company believes that, during the period from
October 1, 1996 through April 30, 1997, all filing requirements applicable to
its officers, directors, and greater than ten percent beneficial owners were
complied with.
MODIFICATION OR EXCHANGE OF SECURITIES AND AMENDMENT OF CERTIFICATE OF
INCORPORATION
The Board of Directors of the Company has submitted to the stockholders,
for adoption by consent in lieu of a meeting, an amendment to the Restated
Certificate of Incorporation of the Company. The text of the resolution of the
Board of Directors containing such proposed amendment (the "Resolution") is as
follows.
"IT IS HEREBY RESOLVED that Section 4.1 of Article 4 of the Restated
Certificate of Incorporation shall be amended in its entirety to read as
follows:
'ARTICLE 4- CAPITAL STOCK
'4.1 The aggregate number of shares the corporation has authority to
issue shall be 7,000,000 shares of which 2,000,000 shares of the par
value of $.10 shall be designated as Common Stock, 3,000,000 shares of
the par value of $.01 shall be designated as Class B Common Stock and
2,000,000 of the par value of $.01 shall be designated as Preferred
Stock. All of the shares of Common Stock of the corporation of the par
value of $.02 issued and outstanding, or held as treasury shares,
immediately prior to the time this amendment becomes effective shall be
and are by this means automatically reclassified and changed (without
any further act) into shares of the par value of $.10, the number of
which shall equal the quotient derived from dividing the number of such
shares by 5. This amendment shall become effective without increasing
or decreasing the amount of stated capital or paid-in surplus of the
corporation, and shall constitute a 1 for 5 reverse stock split,
provided that no fractional shares of less than one share shall be
issued. The holders of fractional share interests of less than one
share that occur as a result of the foregoing reclassification and
change shall be paid in money by the Corporation the value of their
fractional shares.'
RESOLVED FURTHER that the aforesaid amendment shall become effective
on the date established by the Board of Directors."
The effect of the proposed amendment is the conversion of shares of par
$.02 Common Stock into shares of par $.10 voting common stock of the Company
("par $.10 Common Stock") at a conversion ratio of five (5) shares of par $.02
Common Stock for one (1) share of par $.10 Common Stock (the "Reverse Split").
The Reverse Split was proposed by the Board of Directors in response to
notification by the Nasdaq National Market ("Nasdaq") that the Company is
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subject to being delisted from Nasdaq because the per share price of its par
$.02 Common Stock has fallen below $1.00. The effective date of the delisting
was originally scheduled for May 12, 1997. The Company has requested a hearing
and has been given an extension of time until such hearing is scheduled.
Although the Board of Directors believes that the Reverse Split will
bring the per share price of its stock well above the minimum price required for
listing on Nasdaq and should then prevent the delisting, decision-making
authority regarding delisting is established in accordance with the rules of
procedure of the Nasdaq stock market. Under the applicable rules the Company's
application will be considered by a hearing panel designated by the Board of
Governors of the National Association of Securities Dealers ("NASD"). The
decision of the hearing panel would be subject to review by the Nasdaq Hearing
Review Committee in accordance with limitations of time as established by NASD
rules. Provisions for further review may be available in some circumstances by
the Board of Governors of NASD or by the Securities Exchange Commission.
The Company intends to apply for listing and registration of the par
$.10 Common Stock with Nasdaq.
THE CONSENTS
Pursuant to sections 228 and 242 of the Delaware General Corporation
Law, the Company may amend its Restated Certificate of Incorporation by the
written consent of the holders of the stock entitled to vote on the proposed
amendment. Holders of a majority of the outstanding shares of the par $.02
Common Stock of the Company have consented to the Resolution and the Restated
Certificate of Incorporation will be amended as described in the Resolution.
The amendment to the Restated Certificate of Incorporation will be effective
on June 29, 1997.
PROPOSALS OF STOCKHOLDERS
The Company's next Annual Meeting is expected to be held during the
second quarter (January, February, March) of fiscal 1998 at a time and date to
be determined by the Board of Directors. Proposals of stockholders to be
presented at that meeting must be received at the Company's Executive Offices no
later than September 20, 1997, for inclusion in the proxy statement.
John S. Kirk
Secretary
West Des Moines, Iowa
June 9, 1997
