The Board of Directors of AVNX have approved a one-for-fifteen reverse split. If the shares retain their current value of $.86, the post split shares will trade at $12.90 and the adjusted all time high for the company will be $3,915.
Avanex Board of Directors Approves Reverse Split
Tuesday July 22, 9:00 am ET
Effective Date Expected to Be August 12, 2008
FREMONT, Calif.--(BUSINESS WIRE)--Avanex Corporation (NASDAQ:AVNX - News), a leader in telecommunication components that enable next-generation optical networks, today announced that its Board of Directors, pursuant to previously obtained stockholder authorization, approved a reverse split of its common stock at a ratio of 15-for-1, with a planned effective date of August 12, 2008. Accordingly, as of the effective date, each fifteen shares of issued and outstanding common stock and equivalents will be converted into one share of common stock. The reverse stock split will be effected by the filing of a Certificate of Amendment to the Company’s Certificate of Incorporation with the Secretary of State of the State of Delaware.
“Avanex is taking this action to encourage interest in our stock on the part of certain brokerage houses and institutional investors and to be in a better position to continue to meet the listing criteria for trading on the Nasdaq Stock Market,” said Giovanni Barbarossa, the Company’s Interim CEO. “Following the reverse split, our stock will likely trade at a higher nominal price level,” said Barbarossa.
Avanex stockholders will receive instructions from their broker or from Avanex’s transfer agent, Computershare, containing the appropriate procedures for turning in their old share certificates for new, post-split share certificates. Fractional stockholdings will be paid out in cash based on Avanex’s closing stock price on the effective date. Further information on the logistics regarding the reverse split can be obtained by contacting Avanex.
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