Foundation HealthCare's board of directors approved a reverse split.
Here are 10 things to know about the move:
1. The one-for-10 stock split will be effective after the close of the market today.
2. The board decided on the reverse split to enhance Foundation HealthCare's ability to obtain an initial listing on the New York Stock Exchange MKT or another major stock exchange this year.
3. The split and any resulting per share price increase of common stock could make it more attractive to a broader range of institutional and other investors.
4. Each 10 shares of company stock issued and outstanding will be converted to one new share of common stock, par value $0.0001 per share automatically when the split occurs.
5. Foundation HealthCare shareholders approved the reverse stock split last May, reducing company stock from around 172.6 million to 17.3 million.
6. Fractional shares will not be issued in connection with the reverse stock split.
7. In lieu of issuing fractional shares, the company will round up to the next whole share.
8. Foundation's common stock will trade on a post-split basis on the OCTQB for a 20 trading day period after the split. The trading symbol will be FDNHD to denote the reverse split. When the 20 trading day period is over, the symbol will return to FDNH.
9. The company's transfer agent is Computershare, which will be acting as the exchange agent to implement any stock exchange certificates in connection with the reverse split.
10. The stockholders who hold their shares in brokerage accounts or "street name" do not have to take action to effect share exchange.