Vuzix Corp. announced Tuesday it has received all necessary regulatory approvals for a reverse split of its issued and outstanding stock.
The Henrietta-seller of video eyewear products said shares will begin trading on a split-adjusted basis on Wednesday. Plans for the split were announced in October and approved at a special meeting of the company’s shareholders in late November.
In October, Vuzix said the split—on a 1 to 75 basis—was intended to increase the price of the company’s common stock. Vuzix has been trading on the Toronto Stock Exchange since 2010. In December, the company announced its intentions to apply for listing on the Nasdaq Stock Market.
To be listed on Nasdaq, Vuzix must meet the minimum requirements that include having an initial bid price of at least $4 a share and maintain a continued price of at least $1 a share. The company’ stock was trading at 10 cents a share midday Tuesday on the Toronto Stock Exchange, unchanged from Monday’s close.
"We believe the higher split-adjusted stock price will be in the best interest of our shareholders by making it easier to effect transactions in our stock, broaden our audience and shareholder base, and ultimately enhance our valuation as we move forward and grow the company,” said Paul Travers, CEO of Vuzix, in a statement. “While the split did not change the market capitalization of Vuzix, the higher share price is designed to make it easier for shareholders to hold Vuzix stock in their brokerage accounts and to appeal to major customers that look at our share price when deciding to add us as a new supplier."
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