Newton, MA-based Five Star Senior Living said Monday that it will undertake a reverse stock split to regain compliance necessary to be listed on the Nasdaq.
The company’s board has approved a one-for-10 stock split of outstanding shares of common stock effective as of the close of trading on Sept. 30 to meet Nasdaq’s requirement of $1 minimum bid price per share.
“At the effective time, each ten (10) Five Star common shares outstanding immediately prior to the effective time will be converted into one (1) issued and outstanding Five Star common share,” the company explained in the announcement. The shares will begin trading on Nasdaq Oct. 1 on a split adjusted basis under the organization’s existing trading symbol, FVE.
The par value of the Five Star common shares will remain $0.01 per share after the reverse stock split, which will reduce the number of common shares issued and outstanding from approximately 50.8 million to approximately 5.1 million, the company said. The number of authorized common shares will not change.