ITEX Corporation (OTCBB:ITEX) has announced a one-for-five reverse
stock split of its common stock. It will take effect May 3, 2010. As
a result of the reverse stock split, every five shares of ITEX’s
common stock that are issued and outstanding immediately prior to
that date will be automatically combined into one issued and
outstanding share.
No fractional shares will be issued in connection with the reverse
stock split. Stockholders who are entitled to fractional shares will
receive a cash payment, in lieu of receiving fractional shares,
equal to the fractional share interest multiplied by $1.50 per share
on a pre-split basis.
The number of shares of ITEX’s common stock issued and outstanding
will be reduced from 18,027,914 shares to approximately 3,605,307
shares. ITEX filed an amendment to its Articles of Incorporation to
effect the reverse stock split. The authorized shares will be
proportionally reduced from 45,000,000 to 9,000,000 shares.
ITEX’s common stock will begin trading on the OTC Bulletin Board on
a split-adjusted basis under the symbol “ITEXD” for a period of 20
trading days, effective May 3, 2010. Thereafter, the trading symbol
will revert back to the original “ITEX” symbol.
Steven White, ITEX Chairman and CEO stated, “The reverse split will
convert a couple hundred small stock positions into a fractional
share, which the company will cash out. Eliminating these
stockholders will provide better efficiencies and lower costs for
the ongoing management of our shareholder base, and positions us for
other stockholder value strategies.”
Editor’s note: Upon the reverse split, a projected price for ITEX
could approach $5 (given today’s trading price), making it possible
for the company to get listed on the NASDAQ exchange. Additionally,
such a stock price is more appealing to institutional investors.
For more information
click here.
