On 6/1/11, the board of directors at Spanish Broadcasting System authorized a 10-for-1 reverse stock split, and it became effective 7/12/11. Formerly known as SBS on the charts, the company now trades as SBSA – and for 20 trading days, it will have a D appended to it to note the reverse action.
SBS explained, “As a result of the reverse stock split, each ten (10) outstanding shares of pre-split common stock will be automatically combined into one (1) share of post-split common stock. The Company’s registered stockholders will receive instructions from Broadridge Corporate Issuer Solutions, Inc., the Company’s transfer agent, regarding the exchange of outstanding pre-split stock certificates for certificates representing post-split shares of common stock.”
The company is looking to keep its stock above the $1 mark for 10 consecutive days leading up to 7/31/11. It closed 7/13/11 at $6.51 per share, so it will take a catastrophic event to miss that target.
SBS owns and operates 21 radio stations in New York, Los Angeles, Miami, Chicago, San Francisco and Puerto Rico along with television interest.