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.
