CPI Card Group Announces Reverse Stock Split
Thanks for the heads up T695
CPI Card Group Inc. (Nasdaq:PMTS) (TSX:PMTS) (“CPI Card Group” or the “Company”) a global leader in financial and EMV® chip card production and related services, today announced that it will effect a 1-for-5 reverse stock split. The reverse stock split will be effective at 12:01 a.m. EDT, on December 20, 2017. The Company’s common stock will begin trading on a split-adjusted basis on the Nasdaq Global Select Market and on the Toronto Stock Exchange under the Company’s existing symbol “PMTS” on December 20, 2017.
The reverse stock split is primarily intended to bring the Company into compliance with the minimum bid price requirement for maintaining its listing on the Nasdaq Global Select Market. The new CUSIP number for the common stock following the reverse split will be 12634H 200.
When the reverse stock split becomes effective, every five (5) shares of common stock will automatically convert into one (1) share of common stock, with no change in par value per share. No fractional shares will be issued. In lieu of any fractional shares, any holder of less than one share of common stock will be entitled to receive cash for such holder’s fractional share.
The reverse stock split will reduce the number of shares of the Company’s common stock currently outstanding from approximately 55.7 million shares to 11.1 million shares. The number of authorized shares of common stock will remain unchanged. Proportional adjustments will be made to the Company’s outstanding stock options and equity compensation plans.
Because all of the Company’s stockholders hold their shares in book-entry form, they need not take any action in connection with the reverse stock split.
