Dec 04, 2000 (The Business Press - Knight Ridder/Tribune Business News via
COMTEX) -- The Rancho Cucamonga-based makers of Super Glue and display-rack nail
clippers finally figured out a way to boost the price of their shares past the
pesky $1 level: They engineered a 1-to-5 reverse stock split.
 
In danger of losing its listing on Nasdaq, Pacer Technology Nov. 27 consolidated
its 16,515,025 outstanding shares into 3,303,005. Each old share automatically
converted into one-fifth of the new shares.
 
The move worked. Nasdaq added a D to Pacer's PTCH symbol -- indicating a
restructuring of the stock -- after a hearing on the possible delisting of
Pacer's shares, but continued to list the security.
 
The Nasdaq small capital exchange requires issuers to maintain a $1 minimum bid.
Pacer's share price was last above $1 in October.
 
"(Nasdaq) told us we should get our share price above $1 as quickly as
possible," said W. Thomas Nightingale III, Pacer president and chief executive
officer.
 
Pacer shares closed at $2.63 on Nov. 28, down 13 cents on a volume of 22,700.
The old shares had closed at 69 cents with a 52-week high of $1.91 and low of 63
cents.
 
The new price and continued listing on the prestigious Nasdaq exchange may
kindle investor interest, Nightingale said. Pacer's research indicated, however,
that 22 percent of stocks continue to lose value after a reverse split.
 
"Unlike a lot of the companies on the 22 percent side, this is a very solid
company with a very solid balance sheet," Nightingale said. "(Pacer) is a real,
ongoing business. It's not a pet store that has to go through all sorts of
gyrations."
 
Shareholders approved the reverse stock split at their annual meeting Nov. 21,
authorizing the board to offer either a 1-for-3 or 1-to-5 reverse split,
Nightingale said.
 
"The board felt that (1-to-5) would be an appropriate ratio in terms of
mathematically setting the price away from a dollar," he said. "It still
maintains a reasonable number of outstanding shares for reasons of liquidity."
 
Shareholders also opted to keep their board, re-electing Nightingale, Ellis T.
Gravette Jr., Carl E. Hathaway, John G. Hockin II and Larry K. Reynolds as
directors for an additional year.
 
 
By John H. Orr