It should be interesting to see what the balance sheet looks like after the restructuring. A reverse stock split may or may not save them from delisting.
biz.yahoo.com
Thursday December 21, 6:43 pm Eastern Time
Merisel board approves 1-for-10 reverse stock split
SEGUNDO, Calif., Dec 21 (Reuters) - Computer hardware and software distributor Merisel Inc. (NasdaqNM:MSEL - news) on Thursday said its board has approved a 1-for-10 reverse stock split to raise the market price of its common stock to satisfy the $1 minimum bid price per share requirement of the Nasdaq National Market.
On Thursday, shares of the technology reseller closed at 7/32. The company's 52-week high was $3-11/16 set back in April.
In a statement, the company said in the split one share of common stock would be exchanged for every ten shares of outstanding common stock held.
However, the company cautioned that there could be no assurance that the bid price of its common stock will maintain a $1 or higher price, or that it will be able to meet the other requirements for continued listing on the Nasdaq.
The reverse stock split is subject to shareholder approval at a special meeting expected to be held in February. If approved, the stock split is expected to be effective promptly thereafter. An affiliate of Stonington Partners, which owns a majority of Merisel's common stock, has indicated its intention to vote in favor of the reverse stock split. |
