ATLANTA-Sprint PCS affiliate AirGate PCS Inc. reported that independent proxy advisory firm Institutional Shareholder Services Inc. recommended AirGate shareowners vote for each of the carrier’s proposals in connection with its recapitalization plan and assigned AirGate a 90.9 corporate governance rating. A special meeting of AirGate shareowners is currently scheduled for Feb. 12.
As part of its recapitalization AirGate is soliciting approval from shareowners to issue the shares of its common stock in the exchange offers and implement a one-for-five reverse split of its common stock. In addition, AirGate is soliciting approval to increase the number of shares of common stock reserved and available for issuance under its long term incentive plan, amend its long term incentive plan and issue restricted stock units and stock options to certain of its executives.
AirGate noted the ISS report supports the one-for-five reverse stock split because it’s a condition for the proposed recapitalization plan and is necessary to regain listing of AirGate’s common stock on the NASDAQ National Market. AirGate’s stock was delisted from the NASDAQ last April after failing to maintain a $1 bid price per share and minimum $10 million in stockholder equity, and is currently trading on the over-the-counter board at $3.60 per share.
