Vringo Inc. (VRNG), the patent licensing company run by CEO Andrew Perlman, said today that a one-for-10 reverse stock would become effective at 5 pm, Eastern Time, on Nov. 27 and the stock will begin trading on a post-split basis on Monday, Nov. 30.
New York-based Vringo said the reverse stock split is intended to increase the per share trading price of the company's common stock to satisfy the $1 minimum bid price requirement for continued listing on the Nasdaq Capital Market.
Earlier this year, Vringo received notice from the Nasdaq that it was out of compliance with the exchange’s minimum share price listing standard.
Shares of Vringo have traded between 28 cents and $1.09 a share over the past year.
After the reverse split, the number of Vringo shares outstanding will be reduced to 11.3 million shares from 112.7 million shares.
The reverse stock split was approved within a range of one-for-two to one-for-ten by the company's stockholders at the 2015 Annual Meeting on Nov. 16 and the specific ratio of one-for-ten was subsequently approved by the company's board.
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