BearingPoint Approves Plan to Boost Share Price
BearingPoint, the McLean information technology company whose stock has ceased being traded on the New York Stock Exchange, took steps on Friday to boost its share price so that it will be in compliance with the exchange's rules.
Shareholders approved a plan for a reverse stock split at a one-for-50 ratio, the company said. The reverse split would boost the company's share price above the $1 threshold that the exchange requires, the company said.
Along with crossing the $1 threshold, the company must also boost its market capitalization -- or the value that investors place on the company -- above $100 million to be in compliance with the exchange's rules. Its current market cap is $8.8 million.
The company is in talks with lenders to restructure some of the $690 million worth of convertible debt on its books, which the company believes will boost its worth in investors' eyes. That debt can be exchanged for equity, but it is not clear whether its lenders will agree to the move.
The company's stock is currently being traded over the counter on the OTC Bulletin Board. The company's shares were listed at 4 cents in trading on Friday afternoon. At that price, shares would be $2 each after the split.
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