Enfield solar-encapsulant manufacturer STR Holdings said that it would proceed with a one-for-three reverse stock split to regain share-price compliance with the New York Stock Exchange.
STR received notice from the NYSE on Monday that its average share price had fallen below $1 over the 30-day trading period ended Jan. 22.
That means the company faces the threat of being delisted from the exchange, unless the price can regain an average of at least $1 over the next six months.
In an attempt ensure that happens, STR’s board of directors approved the reverse split, which will be reflected in its trading price on Feb. 2.
Shareholders previously approved the split in November, because the company anticipated its share price would drop following its sale of 51 percent of its shares to Zhenfa Energy Group for $21.7 million.
STR said an 85-cent-per-share special dividend issued Jan. 5 — requirement of the deal with Zhenfa — made STR’s share price drop, as it expected.
The reverse split will reduce the number of STR’s outstanding shares to approximately 18.1 million.
STR shares were trading at 52 cents around 2 p.m. Tuesday.
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