New York (NY) – Atari today said that its stockholders have approved a one-for-ten reverse stock split to meet Nasdaq listing requirements and lift the price of one share common stock above the $1 mark. As a result, each 10 shares of Atari common stock, par value $0.01 per share, have been converted into one share of common stock, par value $0.10 per share. Atari will not provide fractional shares and decided to reimburse stockholders in cash for those shares.
Atari’s stock has been trading below $1 per share since January 19, 2006. Nasdaq typically notifies companies that do not meet the $1 requirement and considers a delisting of those companies. Atari said that it had received a letter from Nasdaq on December 20, stating that if its shares will trade above $1.00 for ten days ending on or before January 18, 2007, the organization will withdraw its decision to suspend the listing of Atari’s common stock on the Nasdaq Market.
As of market close today, Atari has a market capitalization of about $76 million.