Net Element Inc. will effect a 1-for-10 reverse stock split to increase the per-share trading price of its common stock to regain compliance with Nasdaq listing requirements.
The company received a letter from Nasdaq in January, stating that it was not in compliance with the 30-consecutive-day $1 minimum bid price requirement. The company was later allowed to continue listing its stock on the Nasdaq exchange after a hearing.
The split is expected to reduce the number of shares outstanding as of Oct. 3 to approximately 2,204,897 from approximately 22,048,974. Net Element's common stock will open for trading on Oct. 5 on a post-split basis.