Tucows Inc. (NYSE MKT:TCX, TSX:TC), announced today that it will transfer its U.S. stock exchange listing to the NASDAQ effective December 30, 2013.
The Company also announced that its board of directors has approved a reverse stock split of the Company’s common shares that will combine every four Tucows common shares into one Tucows common share.
The Company’s common stock is expected to begin trading on a split-adjusted basis at the market open on December 31, 2013.
Shares of Tucows have a 52 week trading range of $1.41 – $3.34 and closed today at $2.91
“The reverse stock split is consistent with Tucows’ growth as a publicly traded company,” said Elliot Noss, President and Chief Executive Officer, Tucows Inc.
“We believe it will expand our universe of potential investors and equity analysts as we continue to grow our business, and will also provide us with greater capital markets flexibility. In addition, we believe our shareholders should benefit through less volatility in our share price, lower transaction costs and greater liquidity. Ultimately, we believe the reverse stock split supports our overriding objective to generate long-term value to our shareholders as we continue to deliver consistency and reliability from our core revenue streams, while capitalizing on meaningful growth opportunities such as Ting.”
Mr. Noss added, “We are pleased to join NASDAQ’s roster of growth-oriented technology companies. NASDAQ provides investors with fast, high quality trade executions within the context of a cost-effective cost structure and high visibility for issuers.”
As a result of the reverse stock split, Tucows will have approximately 10.9 million common shares outstanding (reduced from approximately 43.6 million common shares outstanding), subject to rounding up of all fractional shares to the nearest whole share.
No fractional shares will be issued as a result of the reverse stock split and the Company will round up to one whole share in the event a stockholder would be entitled to receive a fractional share. The number of options outstanding following the reverse stock split will be approximately 1.6 million (reduced from approximately 6.2 million).