NETSOL REVERSE STOCK SPLIT OK'D.Byline: Gregory J. Wilcox Wilcox may refer to: Place names in the United States
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CALABASAS - Software maker NetSol Technologies Inc. reported Friday that shareholders have approved a 1-for-5 reverse stock split that will help it meet minimum bid requirements for listing on the Nasdaq SmallCap market. It means that shareholders will receive one share of stock for every five that they own. The move is expected to ensure that shares are priced at a level that is more consistent with the expectations of the investment community and improves the chances for future growth, company spokesmen said. The split will take effect at 12:01 a.m. Monday. Netsol's ticker symbol Ticker Symbol An arrangement of characters (usually letters) representing a particular security listed on an exchange or otherwise traded publicly. When a company issues securities to the public marketplace, it selects an available ticker symbol for its securities which investors will change to NTWKCD from NTWKC. It is expected that the ``C'' will be removed by Nasdaq once the minimum-bid rule is met. The ``D'' will remain appended to the company's stock symbol 20 days after the effective date of the split. After that trading will resume under the original symbol, NTWK. Netsol's investor relations Investor relations The process by which the corporation communicates with its investors. representative referred calls to company Chairman Najeeb U. Ghauri, who could not be reached for comment. As of June 30, the company had 28.7 million shares of stock issued and outstanding. Holders of 24.2 million shares voted in favor of upon the side of; favorable to; for the advantage of. See also: favor the split. ``We strongly believe that maintaining our Nasdaq SmallCap Market listing is in the best interest of all shareholders as it provides greater share liquidity by the way of potentially higher trading volumes Trading volume The number of shares transacted every day. As there is a seller for every buyer, one can think of the trading volume as half of the number of shares transacted. That is, if A sells 100 shares to B, the volume is 100 shares. , lower bid-ask spreads Bid-Ask Spread The amount by which the ask price exceeds the bid. Notes: For example, if the bid price is $20 and the ask price is $21 then the "bid-ask spread" is $1. , and a higher number of market makers,'' Ghauri said in a statement. Nasdaq officials, still struggling with phone service a day after a massive power blackout A complete loss of power. See brownout. , could not be reached for comment Friday. Earlier this month, the company reported that fourth-quarter revenues of $1.1 million were expected, a 50 percent increase from the year-ago period. And positive earnings per share were being anticipated. The company also said that cost-cutting measures have been effective and losses for fiscal 2003 will be reduced by approximately $3 million from a year ago. Netsol's stock closed Friday at 50 cents, up 5 cents. |
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