News

22 July 2008

 

Avanex board approves reverse stock split

Optical communications component and module maker Avanex Corp of Fremont, CA, USA says that its board of directors has approved a reverse split of its common stock at a ratio of 15-for-1, effective from 12 August. This follows authorization from a special meeting of stockholders earlier this month for a reverse split at a ratio ranging from 10-for-1 to 15-for-1. The board said at that time that it would assess the appropriateness and size of a reverse split.

Each 15 shares of issued and outstanding common stock and equivalents will be converted into one share of common stock. The reverse stock split will be effected by the filing of a Certificate of Amendment to the company's Certificate of Incorporation with the Secretary of State of the State of Delaware.

“Avanex is taking this action to encourage interest in our stock on the part of certain brokerage houses and institutional investors and to be in a better position to continue to meet the listing criteria for trading on the Nasdaq Stock Market,” says interim CEO Giovanni Barbarossa. “Following the reverse split, our stock will likely trade at a higher nominal price level,” he adds.

See related items:

Former VP of business development rejoins Avanex as interim CFO

Avanex stockholders authorize reverse stock split

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