Presstek shifts listings to smaller NASDAQ exchange
Presstek Inc. has moved its stock listing to the Nasdaq Capital Market.
The move came barely a week after the company announced plans to seek shareholder approval for a reverse stock split, in order to boost its share price and prevent being delisted from the larger Nasdaq Global Market exchange.
The Nasdaq Capital Market is designed for shares of less-capitalized companies that do not qualify for inclusion in the Global Market, where Presstek shares previously were traded. The Capital Market’s financial requirements for listing are also less rigorous than the Global Market’s.
The Global Market requires companies listed on its exchange to trade for more than $1 a share, and it notified Presstek last year that it was no longer in compliance with that rule.
The company was given until April 23 to get its stock price up.
Presstek’s move to the Capital Market became effective April 20. Its shares still are being traded under the symbol “PRST.”
The company said it will continue to pursue approval of the reverse stock split, which could be as high as 1-for-15 shares of common stock.
The reverse split merges shares of stock, reducing the number of shares issued, which would theoretically increase the share price proportionately.
Shareholders will be asked to approve the proposal, by proxy or in person, at a June 12 shareholders’ meeting in New York City. But even with the approval, the board will not be obligated to initiate a split.
The company currently has 37.4 million shares issued and outstanding.
A reverse split could reduce the number of shares by as many as 2.5 million. If the company does go through with the split, no fractional shares will be issued. Shareholders will get cash instead for those shares.
The provider of printing equipment, now based in Connecticut but with a major facility in Hudson, has lost $23 million in the past two years, thanks to a lackluster economy and the move away from print media.