The Board of Directors at Level 8 Systems (Nasdaq: LVEL), a provider of eBusiness integration software, has unanimously approved and recommended to stockholders a proposal for a reverse split of the company’s common stock.
Level 8’s stockholders will be asked to approve the proposed amendments to approve the reverse stock split and to reduce the authorized capital stock of the company at their annual meeting on Dec. 20.
Following stockholder approval, the board will implement the reverse stock split at its discretion, the company said in a statement. The board has set Nov. 20 as the record date for determination of the stockholders entitled to vote at the annual meeting.
Stock of Level 8 is currently listed on the Nasdaq National Market and the company is attempting to transfer to the Nasdaq SmallCap Market. The continued listing criteria of the Nasdaq require, among other things, that the company’s stock maintain a closing bid price in excess of $1 per share.
Currently, Level 8’s stock is trading at a bid price below $1 per share, and, to comply with the minimum bid requirement, the Cary-based company must attain a closing bid price in excess of $1 per share.
Accordingly, the other purpose of the reverse stock split is to increase the average trading price of Level 8’s stock on the Nasdaq. If the company then trades on such market, it will regain compliance with the minimum bid requirement.
Level 8: www.level8.com