NU Online News Service, July 3, 2003, 11:22 a.m. EDT – Healthaxis Inc., Irving, Texas, says it hopes to seek permission from shareholders later this month to carry out a reverse stock split.
Healthaxis, a company that sells business services and develops Web-based health insurance sales and administration systems, wants to substitute one new share of stock for somewhere between five and 15 of the shares that are now outstanding.
“The purpose of the proposed reverse split is to enable the company to maintain its listing on the NASDAQ SmallCap Market, and to enhance the acceptability and marketability, and hence the potential liquidity, of its common stock to the financial community and the investing public,” Healthaxis says.
The NASDAQ SmallCap Market requires that a common stock maintain a minimum bid price of at least $1 per share.
“Although the company believes it is in compliance with all other NASDAQ SmallCap Market listing requirements, the company’s stock has not met the minimum bid price for an extended period,” Healthaxis says.
Healthaxis already has filed a preliminary proxy describing the proposed reverse stock split with the U.S. Securities and Exchange Commission. The company hopes to mail a definitive proxy to shareholders around July 17.