|In an attempt to maintain its listing on the Nasdaq Global Select Market, Canada’s Magna Entertainment Corporation has announced a reverse stock split utilising a 1/20 ratio for its Class B and Class A Subordinate Voting Stock.|
A leading operator of racetracks in the US and Austria, Magna is also the firm behind American online betting service XpressBet.com and Europe’s MagnaBet.com. The company's stockholders authorised the reverse stock split in May and now every twenty shares of Class B and Class A stock will be consolidated into one, effectively reducing over 116 million shares to just 5.83 million from July 22.
Magna revealed that the split would affect all shares of its common stock along with all stock options and convertible securities that were outstanding prior to the effective time of the split.
In February, Magna received notice from Nasdaq after the price for each of its shares had fallen below one dollar for more than 30 consecutive days. It was given until August 11 to regain compliance or face permanent de-listing.