Leapnet, a Chicago-based i-shop, is considering a five-to-one reverse stock split as a way to prop up its share price in time to stay listed on the Nasdaq National Market. The Nasdaq requires companies to trade at $1 for a minimum of 10 consecutive trading days. The agency's shares, which last closed at $1 on Feb. 2, were trading at 48 cents on Friday.
According to a filing with the Securities and Exchange Commission on Friday, the proposal first must be approved by shareholders at Leapnet's June 5th annual meeting. The i-shop's board of directors will then decide whether to go ahead with the reverse stock split. If enacted, the move would lower the number of Leapnet shares outstanding to 5.8 million from 29.2 million.
This is the second time in recent weeks that an i-shop has talked of a reverse stock split. In March, Worldwide Xceed Group announced a 10-to-1 reverse stock split, but the move wasn't enough to keep the New York-based i-shop from being delisted from the Nasdaq. In the past 52 weeks, Xceed's share price has swung from $160 to 21 cents. The agency has requested a hearing before a Nasdaq panel to review its staff's recommendation.