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What Are the Reasons For the Reverse Stock Split?

April 26, 2017reasons reverse Split stock

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What Are the Reasons For the Reverse Stock Split?

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Our reasons for implementing a reverse split may include any one or more of the following: • to issue shares to the Guarantors, if the increase in authorized shares under Proposal 3 is not approved; • to increase the price per share of our stock in order to help increase market confidence in Exabyte; • to facilitate various financing arrangements that we may decide to pursue in the future; • to increase the stock price per share in order to list our stock with The Nasdaq National Market, the Nasdaq SmallCap Market or one of the stock exchanges; or • to reduce administrative costs associated with having a large number of outstanding shares. Management believes that having a large number of shares outstanding with a low trading price is not attractive to investors. We believe that the delisting of our common stock from The Nasdaq National Market, among other things, has caused a decrease in the price of our stock. Furthermore, if we conduct a rightsan equity offering (explained more f