Specialty foundry TowerJazz(which has fabrication plants at Tower Semiconductor Ltd in Migdal Haemek,Israel,and at its subsidiaries Jazz Semiconductor Inc in Newport Beach,CA,USA and TowerJazz Japan Ltd)says that its board of directors has approved a reverse split of its ordinary shares at a ratio of 1-for-15.
The reverse split will reduce the firm's number of outstanding ordinary shares to about 22 million shares.Fractional shares as a result of the reverse share split will be rounded up to the next whole number.Proportional adjustments will be made to all of TowerJazz's outstanding convertible securities.
The reverse share split is intended to enable TowerJazz to regain compliance with the NASDAQ minimum bid requirement to maintain its stock listing on NASDAQ.
The firm's ordinary shares will begin trading on a split-adjusted basis on NASDAQ commencing 6 August and on the Tel Aviv Stock Exchange commencing 5 August,subject to approval by the firm's shareholders on 2 August.
"The reverse split action is being done for the benefit of our shareholders-it is intended to enable continued US investment and analysts'coverage by regaining our listing on NASDAQ,while continuing to be traded on the Tel Aviv Stock Exchange,"says TowerJazz's CEO Russell Ellwanger."We also expect this action to create new opportunities for us with large-size institutional investors and analysts."
