Resources approves stock split

F & E

October 29, 1994|By a Sun Staff Writer

F & E Resource Systems Technology Inc. of Baltimore said yesterday that its board approved a 1-for-4 reverse stock split as a way to boost the company's stock price and get its shares listed on the Nasdaq Small Cap Market.

F & E Resource Systems, a waste processing and recycling company, said it was making the move because Nasdaq conditioned its agreement to let the company's stock trade in the Small Cap market on the stock's price reaching $1 a share.

The company's stock has traded on the less prestigious and less liquid OTC Bulletin Board market since June, when the company was delisted from the Small Cap market for having insufficient capital.

Under the terms of the proposal, stockholders would receive one share of new stock for every four shares they now own.

The number of shares outstanding would be reduced to 2.8 million from 11 million.

The company's stock, which closed Thursday at 37.5 cents a share, would trade at $1.50 a share after the reverse split.

F & E Resource Systems said the stock split was to become effective at the close of business yesterday.

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