NEW YORK -- The Razorfish board of directors has approved a reverse stock split of its common stock in a ratio of one-for-30 after stockholders gave it the go ahead last week, the i-shop said Monday.
The New York-based company's common stock opened under the split adjustment at $4.04 Tuesday. The stock will trade under the symbol "RAZFD" for the next 20 trading days and will resume trading under "RAZF" after that.
The reverse stock split is meant to help Razorfish maintain its listing on the Nasdaq stock market. The interactive shop was notified by the Nasdaq in May that it faced delisting because its shares failed to comply with the exchange's minimum bid price requirement, which calls for a company's stock to maintain a closing bid price in excess of $3 per share [IQ Daily Briefing, May 20]. Over the past year, Razorfish's stock price has traded under $1, with its 52-week high at 79 cents and 52-week low at 12 cents.
The Nasdaq Listing Qualifications Panel indicated that they would assess the results of the reverse split before determining the company's future status on the exchange, a Razorfish representative said.