UTStarcom Announces USD 30 Mln Offering, Reverse Share Split
UTStarcom, 11/19/12
Chinese network solutions provider UTStarcom (Nasdaq: UTSI) has announced that its Board of Directors has authorized the commencement of a cash tender offer for USD 30 mln of the company's outstanding ordinary shares at a purchase price of USD 1.20 per share. The company intends to commence the tender offer by December 7, 2012. The Board of Directors has also authorized the company to obtain required shareholder and other approvals and prepare and file the necessary documents to effect, promptly following the closing of the tender offer, a 3-for-1 reverse split of its outstanding and authorized ordinary shares. It is currently anticipated that these actions will be completed by the end of the first quarter of 2013.
To view the complete release please see here.
Editor's Note: UTStarcom's stock is currently trading at under USD 1 per share, putting it in danger of non-compliance with Nasdaq listing rules. The USD 30 mln offering and reverse share split are both efforts to push the share price back up over USD 1.
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