Health firm LifeVantage (LFVN—NASDAQ) has initiated a 1-for-7 split of its common stock, effective Monday.
In its full-year earnings results, issued Sept. 1, LifeVantage reported 97.8 million shares outstanding. Management also advised that the company’s stock had dipped below the $1 minimum bid price required to continue trading on the NASDAQ Capital Market. To cut the number of shares outstanding and secure its listing, the company’s board of directors recommended a reverse split. LifeVantage shareholders authorized the measure at the company’s annual shareholder meeting on Oct. 15.
“During the past three years we have been very open about our desire to significantly reduce our shares outstanding, and therefore, we have repurchased approximately 30 million shares,” Board Chairman Garry Mauro said in the company’s earnings release. “In addition, we believe that having fewer shares outstanding and a higher stock price will make our company more attractive to the institutional money managers.”
The 1-for-7 split converts every seven shares of the company’s stock into one share, with no resulting change in face value. At midday on Monday, shares in LifeVantage were trading up 0.89 percent at $5.65 per share.