EDC Approves Reverse Stock Split26 Aug, 2008 By: Erik Gruenwedel
Shareholders of packaged media distributor Entertainment Distribution Co. have agreed to a fiscal reorganization plan designed to keep the New York company’s stock listed on The NASDAQ (National Association of Securities Dealers Automated Quotation) Capital Market.
Under the plan approved Aug. 22 at EDC’s annual meeting, shareholders exchanged 10 shares of common stock for one share of common stock of EDCI Holdings.
The reverse stock split took effect Aug. 26.
EDC has until Dec. 29 to maintain a minimum $1 per share stock price for 10 consecutive business days to remain listed with NASDAQ.
The distributor lost $5.3 million on revenue of $79.4 million in the second quarter (ended June 30), compared to a loss of $4.7 million and revenue of $80.2 million during the previous-year period.
EDC’s stock closed Aug. 26 at $3.90 per share.