Atari Splits Its Stock To Avoid Delisting

Video Game Law Blog

January 08, 2007

As anticipated, Atari is going to do a reverse stock split in order to bring its stock price above $1 as it is doing a ten for one reverse stock split, meaning that every shareholder will get one new Atari share for every ten old Atari share he, she or it held prior to the reverse stock split.

This will at least for a little while give its management the opportunity to work out its business and financial issues until the stock dips below $1 again.

Such a consolidation requires simple majority at a special meeting of the shareholders, which should not be an issue as Atari's parent hold more than 50% of the issued and outstanding shares of Atari.