Webvan Shareholders Vote For Reverse Stock Split

NEW YORK–Webvan shareholders meeting in Foster City, Calif. Friday approved a one-to-25 reverse stock split of the outstanding shares of Webvan’s common stock.

The number of outstanding shares for the beleaguered online grocery service will plunge from 480 million shares to 19 million, and the shares will be worth about $2.25 per share, at least 25 times more than they were based on Thursday’s closing.

Webvan needs to raise its shares above $1 per share to avoid being delisted by Nasdaq, which has informed Webvan that it will have until July 23 to implement the reverse stock split.

Webvan, which currently operates in seven cities, previously warned shareholders that it requires an additional $25 million to stay in business beyond March 2002.