Drkoop.com Nixes Reverse Stock Split
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Based on shareholder feedback, drkoop.com Inc. has shelved plans to hold a stockholder meeting to vote on a reverse split of its stock.
The company initially intended to solicit stockholder approval of a reverse stock split in response to a NASDAQ notification regarding possible delisting. According to the NASDAQ notice, drkoop.com's is not in compliance with the $1.00 minimum bid requirement and may be delisted if it is unable to demonstrate compliance for 10 consecutive trading days prior to February 22, 2001.
At press time, the company's stock was selling at 15/32, a -1/32 change from the opening price.
For a reverse stock split to go into effect, the company would need the approval of stockholders holding an absolute majority of the outstanding common stock, including the holders of preferred stock voting on an as-if converted basis.
However, several significant stockholders contacted the company and stated they would oppose the reverse stock split if a vote took place.
"We will continue our mission to maximize shareholder value by striving to achieve a profitable future," said Richard Rosenblatt, CEO of drkoop.com. "We are aggressively pursuing new business opportunities and are pleased with our progress thus far."
The company announced yesterday that it is laying off staff, consolidating operations and seeking new content partnerships in efforts to turn a profit.