Ashford.com, an e-commerce destination for corporate and personal gifts and rewards, said it has received stockholder approval to complete a one-for-ten reverse stock split. The approval was granted at the annual shareholder meeting held in Houston.
The reverse split will be completed prior to the opening of trading on October 15, 2001. As a result, every ten outstanding shares of Ashford.com common stock will be automatically converted into one share of Ashford.com common stock.
The split is intended to bring the minimum bid price of its common stock above $1.00 per share, in accordance with the Nasdaq National Market’s continued listing requirements.
“We see this as one step in maintaining our listing status with the Nasdaq National Market,” David Gow, CEO of Ashford.com., said in a statement. “At the same time, we have implemented a broad number of changes that are improving our business performance significantly. We have lowered spending, divested unprofitable business units and increased focus on our most profitable opportunities. We believe we are on a very good trajectory.”
Fractional shares of stock will not be issued as a result of the reverse split. Stockholders who would otherwise receive a fractional share of common stock will be entitled to receive an equivalent amount of cash in lieu of fractional shares, based on the closing price of the common stock prior to the opening of trading on October 15, 2001.
Mellon Investor Services is the company’s transfer agent and will act as the exchange agent for the purpose of implementing the exchange of stock certificates in relation to the reverse split.
There can be no assurance that after the consummation of the reverse split the common stock will trade at ten times the market price prior to the reverse split or above the $1.00 per share minimum bid price.