Happy Harry: Looks like a 5:1 split for ADR's--10:1 for London shares.
Tom D.
Before Tuesday?s opening bell, Baltimore Technologies (NasdaqNM: BALT), announced the completion of its acquisition of GTE CyberTrust Solutions, Inc. In the agreement, which was originally announced January 17th, GTE consented to relinquish its rights to Baltimore for the price of US $150 million. Baltimore?s acquisition of GTE CyberTrust Solutions, Inc. was formally achieved when 936,111 shares in Baltimore Technologies were distributed to GTE?s subsidiary, Contel Federal Systems Incorporated.
Additionally, 1.6 million shares of Baltimore will serve as incentive arrangements for employees of the newly obtained company.
The Company also announced plans to split their ADRs on a 5:1 basis and their ordinary shares, trading under the symbol BLM on the London stock exchange, on a 10:1 basis. An adjustment would be made along with the 5:1 split of the ADRs to change the ratio of the ADRs to the ordinary shares so that the ADRs, which each currently represent one underlying share, would represent two underlying shares.
The proposal will be presented to shareholders at the annual general meeting to be held May 9th. If the split is approved, the shares will begin trading on a post-split basis May 10th. Accounting for the aftermath of the acquisition, 40.2 million shares of Baltimore Technologies are outstanding comprised of a trading float shy of 7 million. Trading in BALT has been light with volume averaging 35 thousand trades in the past 3-months.
Baltimore, headquartered in the United Kingdom, develops products and services that secure business conducted via computer networks. The company is a market leader in the Public Key Infrastructure (PKI) technology. This technology allows for secure management of digital certificates, which ensure authenticity and confidentiality in electronic transactions. The technology is trusted in the most precarious agreements, including those involving the highest government officials. The PKI systems are also deployed by high-profile banks and other institutions worldwide.
Shares of BALT were first offered publicly in late October for less than $25. Since then, the stock price has multiplied over nine times to set its high at $225 in mid-February. Although it has since seen some retracement, the stock has maintained well considering its unwonted progress; BALT logged in with a +3.25 gain Tuesday to close at $163.25. Notwithstanding the tremendous run-up in price, trading volume, which should be moving in conjunction with price, has fallen short. This will preclude an addition of BALT to our Recommended Split List; however, we will be monitoring the stock should an exceptional trading opportunity arise.
For further details on Baltimore Technologies, be sure to check out the Company?s complete profile located on the site. To view a chart on the stock, click on the link provided below.
Chart = splittrader.com |
