Pacific Ethanol shareholders approve reverse-stock split
Pacific Ethanol shareholders voted to approve a reverse-stock-split proposal.
- Staff Sacramento Business Journal
Sacramento-based Pacific Ethanol Inc.[1] said Friday that shareholders had voted to approve a reverse-stock-split proposal.
In a filing with the Securities and Exchange Commission[2], the company said nearly 77 percent of shares were cast for a provision allowing the company to replace every five to 15 shares with one share in a bid to keep the stock price above $1. The exact ratio of the split -- which may be executed at any time before the company's annual meeting next year -- is left to the discretion of directors.
In December, Pacific Ethanol (NASDAQ: PEIX) won a reprieve from Nasdaq, which gave the energy company until June 13 to raise its stock above that threshold for at least 10 consecutive days. Shares have remained well under 50 cents in the following months.
Last week, the company announced it was extending until May 10 a deadline for shareholders[3] to approve the proposal.
The reverse split would be the second in two years. In June 2011, the company performed a 7-to-1 reverse split to avoid delisting. But the shares dipped below $1 in April 2012 and have traded under 40 cents per share for most of 2013.
Launched in 2003, the company was co-founded by Bill Jones[4], former Secretary of State and a high-profile Central Valley farmer. Jones remains the company’s chairman.
On Wednesday, the company announced first-quarter sales improved[5], with revenue of $225.5 million, up from $197.7 million in the year-earlier period. The company’s loss available to common stockholders widened slightly to $5.8 million, compared to $5.3 million in the same quarter in 2012.
References
- ^ Pacific Ethanol Inc. (www.bizjournals.com)
- ^ Securities and Exchange Commission (www.bizjournals.com)
- ^ a deadline for shareholders (www.bizjournals.com)
- ^ Bill Jones (feeds.bizjournals.com)
- ^ first-quarter sales improved (www.bizjournals.com)