For Further Information:
Scheid Vineyards Inc. (Nasdaq SCM: SVIN)
305 Hilltown Road
Salinas, CA 93908
(831) 455-9990
www.scheidvineyards.com
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CONTACT:
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Scott Scheid, President and Chief Executive Officer
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Mike Thomsen, Chief Financial Officer
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For
Immediate Release:
April 19, 2006
SCHEID VINEYARDS INC. ANNOUNCES THE MAILING OF ITS
DEFINITIVE INFORMATION STATEMENT IN CONNECTION WITH
ITS REVERSE STOCK SPLIT
SALINAS, CA – April 19, 2006 - Scheid
Vineyards Inc. (Nasdaq SCM: SVIN) (“Scheid”) announced today that it
mailed its Schedule 14C Definitive Information Statement to its
stockholders of record, describing a 1-for-5 reverse stock split (“Reverse
Stock Split”) of Scheid’s Class A and Class B Common Stock. As a result of the Reverse Stock Split, the
holders of record of Scheid’s Class A Common Stock will be reduced to less
than 300. The purpose of the Reverse
Stock Split is to position Scheid to be able to terminate the registration of
its Class A Common Stock under Section 12(g) of the Securities
Exchange Act of 1934, as amended (“Exchange Act”) so that it will no longer be
required to file periodic reports and other information with the Securities and
Exchange Commission (the “SEC”).
Scheid intends to effect the Reverse Stock
Split by filing an amendment to its Certificate of Incorporation (the
“Amendment”) with the Delaware Secretary of State, which will be effective on
May 12, 2006. On the effective date of
the Amendment, stockholders holding fewer than five (5) shares immediately
prior to the effectiveness of the Amendment, and stockholders holding a number
of shares not evenly divisible by five (5), of either Class A or
Class B Common Stock, will receive a cash payment in the amount of $9.25
per pre-split share, in lieu of a fraction of a share of new Class A
Common Stock and/or new Class B Common Stock that would otherwise be
issued following the Reverse Stock Split.
On or about May 12, 2006, Scheid intends to
file a Form 15 with the SEC which will terminate the registration of its Class
A Common Stock under the Exchange Act.
Scheid anticipates that it will continue future operations as a
non-reporting company, thereby relieving it of the costs, administrative
burdens and competitive disadvantages associated with operating as an SEC
reporting company. In connection with
the deregistration process, Scheid will request that Nasdaq delist its
Class A Common Stock from The Nasdaq SmallCap Market as of the close of
business on May 12, 2006. Thereafter, Scheid anticipates that its shares
of Class A Common Stock will be traded on the Pink Sheets Electric
Quotation Service, but can make no assurances that any broker will make a
market in the Scheid’s Class A Common Stock.
All stockholders are urged to read the
Definitive Information Statement and any other relevant documents filed with
the SEC, since they will contain important information about the
transaction. Stockholders may obtain
the documents filed with the SEC free of charge at the website maintained by
the SEC at www.sec.gov.
In addition, stockholders may obtain documents filed with the SEC by
Scheid free of charge by requesting them in writing from Scheid, 305 Hilltown
Road, Salinas, California 93908, or by telephone at (831) 455-9990. Scheid will
also mail a copy of the Definitive Information Statement to its stockholders.
About Scheid Vineyards Inc.
Scheid Vineyards Inc.
(www.scheidvineyards.com) is an independent producer of premium wine grapes and
bulk wine. Scheid operates approximately 5,700 acres of vineyards, primarily in
Monterey County, California. Scheid sells most of its grape production under
short and long-term grape and bulk wine contracts to wineries producing high
quality table wine. Scheid also operates a winery with an approximately 11,000
ton processing capability in which Scheid produces bulk wine, as well as a
small amount of ultra premium wine under its own label.
Forward Looking Statements
Those statements
above that involve expectations or intentions (such as those related to the
proposed transaction) are forward-looking statements within the meaning of the
U.S. securities laws, involving risks and uncertainties, and are not guarantees
of future performance. You are cautioned that these statements are only
predictions and that forward-looking statements are subject to a number of
risks, assumptions and uncertainties that could cause actual results to differ
materially from those projected in such forward-looking statements. These
risks, assumptions and uncertainties include, but are not limited to: future
decisions by the SEC or other governmental or regulatory bodies; and other
risks outlined in our filings with the SEC, including the annual report on
Form 10-KSB for the year ended December 31, 2005 and the most recent
quarterly report on Form 10-QSB for the third fiscal quarter ended
September 30, 2005. All forward-looking statements are only as of the date
they are made and Scheid disclaims any intention or obligation to update or
revise any forward-looking statements, whether as a result of new information,
future events or otherwise.