Atari stockholders have approved the reverse stock split first suggested last year
, in order to allow the ailing game publisher to continue trading on the Nasdaq stock exchange.
The plan called for a one-for-ten reverse stock split, with the company stating last November that, "Currently, the price of Atari common stock is approximately $0.50 per share. The proposed stock split would reduce the outstanding shares to one-tenth their current number, and by doing so, should result in a per share market price well above the $1.00 per share Nasdaq minimum bid price requirement."
The approval of the deal will now allow the company to trade its stock at a price above $1 per share - the minimum requirement demanded by Nasdaq. Those stockholders who now own fractional shares will receive cash reimbursements.
Atari, the U.S. subsidiary of French publisher Infogrames, was seen to be struggling throughout 2005, although the company did receive a new $15 million credit facility with Guggenheim Corporate Funding at the same time as the stock split was suggested last November. Nevertheless, the company has recently embarked on a major restructuring, selling prominent external studios including Shiny and Melbourne House.
Atari CEO David Pierce commented in a statement: "We are pleased that our stockholders have approved this step that will enable our common stock to continue to be listed on the Nasdaq Global Market. We view that listing as an important benefit to our stockholders."