CARROLLTON, Texas-CellStar Corp., a distributor and value-added logistics provider to the wireless industry, will seek shareholder approval at its annual meeting February 12 for a one-for-five reverse split of common stock to reduce the number of outstanding shares so the stock can continue its Nasdaq listing.
“The company believes that completion of the reverse split will permit CellStar to meet the minimum trading price requirement of the Nasdaq National Market System, although there can be no guarantee that this requirement will be satisfied,” CellStar said in a press release issued after the close of trading January 14.
Nasdaq’s requirements for continued listing are a combination of criteria, including market capitalization, number of outstanding shares and market value of the public float of those shares.
CellStar, which had 60.142 million shares outstanding as of January 4, according to Nasdaq, closed at 75 cents per share January 14. The stock has posted a 52-week high of $2.70 and a 52-week low of 73 cents.
