Net Element Inc. shareholders will vote on a proposal to approve a reverse stock split, which the company plans to use to increase the price of its shares and avoid being delisted by the Nasdaq Capital Market.
The stock has traded below $1 per share, the minimum price to comply with Nasdaq listing rules, since November 2016.
The reverse split would combine each group of 10 to 30 shares, inclusive and as determined by the board, into one new share of common stock.
If shareholders approve the action, the board would be able to implement the reverse split at any time before the end of 2017, though it could also choose to delay it.
Shareholders also face a vote on a separate proposal to approve Net Element's share purchase agreement with Cobblestone Capital Partners, which agreed to buy up to $10 million in common shares over a 30-month period. Shareholders must approve the agreement for it to go forward.