Wave Systems Corp. (WAVX: Quote) announced that, following shareholder approval at the company's annual meeting on June 20, 2013, the Board of Directors has approved a 1-for-4 reverse split of the company's common stock. The reverse stock split will be in effect at the commencement of trading Monday, July 1, 2013.
The company said that the reverse split is being implemented for purposes of regaining compliance with the $1.00 per share minimum closing bid price requirement for continued listing on the Nasdaq Capital Market.
For every four shares held, Wave shareholders will receive in exchange one new share of Wave Systems common stock. Shareholders otherwise entitled to fractional shares as a result of the reverse stock split will receive cash payments in lieu of those fractional shares, the company said.
The number of common shares issued and outstanding (Class A and Class B combined) will be reduced to approximately 29.2 million from approximately 116.9 million. Shareholders' percentage ownership in the company will remain unchanged as a result of the reverse split, the company noted.
The company believes that the reverse stock split will enable it to regain compliance with the $1 per share minimum closing bid price continued listing requirement.
by RTT Staff Writer
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