ATLANTA-Fighting a Nasdaq-set deadline for the delisting of its common stock, Cypress Communications Inc. will ask shareholders Aug. 17 to select a stock split ratio that will best boost the price of the company’s common, trading at 32 cents per share on the Nasdaq. The 52-week high is $8.81; the low, eight cents per share.
The locally based provider of bundled broadband communications services used in 1,000 office buildings representing 103 million rentable sf has until the end of August to raise its share price. If it can’t, the stock will be removed from Nasdaq’s board but Cypress may appeal that ruling.
If shareholders approve the company’s plan for a reverse split, the action will reduce the number of common shares outstanding, W. Frank Blount, Cypress chairman/CEO, says in a prepared statement.
The company is also retaining Breckenridge Group, an Atlanta-based investment bank, to assess acquisition opportunity and find additional capital sources to fund new acquisitions.
Morningstar, the national stock rating service, on its June 28 scoreboard gives Cypress a B-plus for growth potential; a C-minus in financial health; and an F in the profitability column.