Green Circle Decarbonize Technology's shares had been trading well below a dollar. The company said that put its NYSE American listing at risk. On October 7, every six of its shares will become one.
The company made the announcement on September 23, stating the primary purpose is to lift the per-share price and maintain its NYSE American listing, according to a GlobeNewswire release. Shareholders had voted in favour at an extraordinary general meeting on August 10.
For every six shares a holder owns before October 7, they will receive one after. Their proportional stake in the company stays the same; only the count changes. Outstanding options, warrants and other convertible securities adjust on the same 1-for-6 basis, the company said.
Shares closed 50.03% higher at $0.5110 on September 24, on dollar volume of about $111 million across 333,124 trades.
The company did not say what price threshold NYSE American requires, or how far the current price falls short of it.
The free float is about 7.2 million shares, or 53.1% of shares outstanding. In the session following the announcement, short volume came to about 70.4 million shares.