Atari undergoes a 1-for-10 reverse stock split.
Floundering game publisher Atari (ATAR) has announced that a 1-for-10 reverse stock split has been approved by the company's shareholders. Every 10 shares of stock have now been consolidated into one share, and those shareholders who have fractional shares will receive cash payment. In effect since December 27th, the split rose shares of Atari from $.57 apiece to $5.70. This split was caused by delisting pressures from Nasdaq, who threatened to delist Atari from the exchange. Shares must stay above $1 until January 18th for the company to remain listed.
David Pierce, CEO of Atari, added: "We are pleased that our stockholders have approved this step that will enable our common stock to continue to be listed on the Nasdaq Global Market. We view that listing as an important benefit to our stockholders."