NEW YORK 24/7 Real Media's board of directors has approved a one-for-five reverse stock split after stockholders gave it the green light, the interactive marketing and technology company said yesterday.
The move is meant to attract institutional investors, who do not typically invest in companies with a stock price lower than $5, according to a 24/7 representative.
The stock, which was trading on the Nasdaq SmallCap Market today at $2.13, is expected to begin trading on a post-split basis on Feb. 27. It will trade under the temporary symbol "TFSMD" before reverting back to "TFSM" on or about March 26.
As a result of the reverse stock split, every five shares of 24/7's common stock will be combined into one, reducing the number of shares of common stock outstanding from 127 million to about 25 million.
The reverse split, which will affect the company's common stock, preferred stock, stock options, warrants and other equity-linked instruments outstanding, comes eight months after 24/7 was in danger of being delisted from the market. The company averted a delisting by regaining compliance with the $1 minimum bid price requirement [IQ Daily Briefing, June 25, 2003].
The stock's 52-week high is $2.49; its low, 19 cents.
Separately, 24/7 today said that it has been selected to sell and manage ads for the Windows Media Ad Partner Program, which consists of nearly 50 music, movie, entertainment and radio Web sites that work with Microsoft to offer streaming media content using the Windows Media format.