3DO Relocates Headquarters, Announces Reverse Stock Split
The company relocated its facilities in both the U.S. and the U.K., and says the moves will save the company over $6 million per year in operating expense, beginning in the current fiscal year (which ends March 2003). The company's total lease obligations were reduced by more than $60 million. The company's new addresses are 200 Cardinal Way, Redwood City, California, 94063, USA, and 9Z Upper Aughton Road, Southport, Merseyside, PR99UZ, U.K.
In another development, the 3DO board of directors approved a reverse stock split, which still must be approved by stockholders, to help the company meet Nasdaq listing requirements. For most of the last five months 3DO shares have barely broken the $1 mark (today they sit at 39 cents) -- a share-price threshold Nasdaq requires.
The company has set August 20, 2002, as the date for a special meeting of stockholders to vote on the proposed reverse split, but it may come too late for the company: Nasdaq will decide on August 8 whether to delist 3DO. The Nasdaq delisting panel may take the upcoming reverse split into consideration when it makes its decision, however.