Medical Transcription Billing's board has proposed a reverse stock split to boost its share price and regain compliance for listing on the Nasdaq Stock Market.
The company plans to put to a shareholder vote an authorization for a reverse split by a ratio of not less than 1-for-3 and not more than 1-for-8, according to a regulatory filing.
Medical Transcription's share price closed at 80 cents on Jan. 24. Nasdaq on Dec. 30, 2016, granted the company an extension for a deadline to regain listing compliance of maintaining a $1.00-per-share minimum bid price.
The company's board has proposed an amendment to its certificate of incorporation to effect the reverse split an any time prior to June 19 or to abandon the move if board members decide it is no longer in the company's best interests.
Based on 10,423,511 outstanding shares, a 1-for-3 split would reduce the number of shares to approximately 3,475,000. A 1-for-8 reverse split would reduce the number to about 1,303,000.