LED chip and component maker SemiLEDs Corp of Hsinchu, Taiwan has effected a one-for-ten reverse stock split of its outstanding common stock.
The reverse stock split was approved by the board of directors on 7 January and by shareholders on 12 April. The final ratio of the split was approved by the board on 12 April, and did not require separate approval by shareholders as it was within the range previously approved.
As a result, every ten shares of the common stock issued and outstanding on 15 April has been combined into one issued and outstanding share (reducing the number of shares outstanding from about 29.1 million to about 2.9 million). The firm will pay cash in lieu of any resulting fractional shares. In connection with the reverse stock split, there will be no change in the par value per share of $0.0000056. Also, the reverse stock split will not reduce the number of authorized shares of common stock.
The reverse stock split is intended to increase the per-share trading price of the stock to satisfy the $1 minimum bid price requirement for continued listing on the NASDAQ Capital Market.
Trading of the stock on the NASDAQ Capital Market continues (on a split-adjusted basis) with the opening of the markets on 18 April, under the existing trading symbol 'LEDS' and under a new CUSIP number 816645204.
SemiLEDs has retained its transfer agent American Stock Transfer & Trust Company LLC (AST) to act as its exchange agent for the Reverse Stock Split. AST will provide shareholders of record as of the Effective Date instructions for the exchange of their holdings. Shareholders owning shares via a broker or other nominee will have their positions adjusted to reflect the Reverse Stock Split, without being required to take any action in connection with the reverse stock split.
