02 Nov Sonic Foundry plans reverse stock split in move to avoid delisting from NASDAQ
MADISON – Sonic Foundry founded in 1991 and best known for its patented webcasting technology MediaSite Live technology has until Dec. 21 to raise its stock price to $1 or more per share for at least 10 trading days or risk being delisted from the Nasdaq Capital Market.
The company’s stock has been selling for less than $1 a share since early 2008.
In an effort to raise the value of its stock Sonic Foundry’s Board of Directors has authorized a one-for-ten reverse stock split of its common stock. The reverse split will be effective at 6:01 p.m. ET on November 16, 2009. The reverse stock split affects all issued shares of the Company’s common stock outstanding immediately prior to the effectiveness of the reverse stock split. The number of shares reserved for issuance under Sonic Foundry’s equity compensation plans will also be reduced proportionately.
Sonic Foundry’s common stock will start trading on a split-adjusted basis onthe NASDAQ Capital Market at market open on November 17, 2009.
The number of shares of Sonic Foundry’s common stock issued and outstanding will be reduced from approximately 36,069,000 shares to approximately 3,606,900 shares post-split, without accounting for fractional shares. Sonic
Foundry will not issue any fractional shares of its common stock as a result of the reverse stock split. Instead, stockholders who would otherwise hold fractional shares will be entitled to receive cash (without interest or deduction) in lieu of such fractional shares in an amount equal to the fraction to which the stockholder would otherwise be entitled multiplied by the closing sales price of Sonic Foundry’s common stock as reported on the NASDAQ Capital Market on November 16, 2009, as adjusted for the reverse stock split.