AccretiveHealth's board of directors is seeking stockholder approval for areverse stock split of the company's outstanding shares of common stock at aratio in the range of 2-to-1 to 10-to-1.
As a result of the reverse stock split, the company's commonstock would have a higher market price and increased marketability andliquidity to attract more investors, according to the board.
If approved, the reverse stock split would reduce the numberof outstanding shares of common stock based on the ratio selected by the board,but will not increase the par value of common stock. It would alsoproportionately reduce the number of issued and outstanding treasury shares ofcommon stock and the authorized shares of common stock.
After the reverse stock split, the percentage of outstandingcommon stock held by the shareholders will remain approximately the same andcould result in them receiving cash in lieu of a fractional share.
The company has 370,000 shares of series A preferred stock,of which 210,160 shares are issued and outstanding. The split will not affectthe number of shares of preferred stock Accretive Health is authorized to issue.