PERMA-FIX ISSUES REVERSE STOCK SPLIT

Perma-Fix Environmental Services’ one-for-five reverse stock split took effect at 12:01 a.m. this morning. In a release, the company said, “The combination of, and reduction in, the number of shares of the Company’s outstanding common stock as a result of the reverse stock split will occur automatically at 12:01 a.m. on October 15, 2013, without any further action on the part of the Company’s stockholders and without regard to the date that stock certificates representing the pre-reverse stock split outstanding shares of the Company’s common stock, are physically surrendered for certificates representing the post-reverse stock split shares of the common stock.” The release also stated that no fractional shares will be issued. Shareholders holding fractional shares will receive cash in lieu of fractional shares.

 

Perma-Fix’s board of directors voted on the one-fore five reverse stock split in September. The reasoning behind the decision focused on raising the stock price to meet NASDAQ’s minimum requirement of $1.00. Perma-Fix’s share price hovered around $0.50 for most of this year, but NASDAQ gave the company until Dec. 2 to meet the $1.00 threshold. Perma-Fix CEO Lou Centofanti previously said in a statement to RW Monitor, “First, it is important to note that a reverse split has no real impact on investors—other than perception. Since everyone’s shares are equally reduced, each investor’s ownership percentage remains unchanged.” The reverse stock decision had the support of stockholders at the company’s annual meeting in September, according to a Securities and Exchange Commission filing.