's boardis seeking shareholder approval to implement a 1-for-10 reverse stock split ofits issued and outstanding common shares.
Should the measuregain approval, the board plans to enact the reverse split within 12 months ofthe company's annual meeting, which is set for Nov. 21.
The reversesplit is aimed at increasing the trading price of the Richmond, Va.-basedcompany's common stock, as Xenith believes that an increase in trading pricewill make the stock more attractive to a broader range of investors. The movemay also reduce a number of costs for the company, such as Nasdaq Stock Marketlisting fees.
Xenithcurrently is authorized to issue up to a total of 1 billion shares of capitalstock, consisting of 1 billion common shares, of which 230,886,387 shares wereissued and outstanding as of Sept. 29, and 1 million preferred shares. Afterthe proposed reverse stock split, the company anticipates having roughly9,235,455 common outstanding shares. In addition, no fractional shares will beissued if the reverse split is implemented.
The companyadded that it believes that the reverse stock split will not have any materialeconomic effect on shareholders or holders of options, restricted stock orrestricted stock units.