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Atari reverse splits stock to stay listed

Each ten shares of Atari common stock, worth $0.01 per share, has become one share of common stock, valued at $0.10 per share. Stockholders entitled to fractions of a share will receive cash instead of fractional shares.

The move means that the firm can now meet the minimal stock price requirement for Nasdaq. Atari's stock has been trading below $1 per share since January 19, 2006.

A letter from Nasdaq to Atari, dated December 20th, says that if its shares trade for above $1.00 for ten days ending or before January 18th, 2007, Nasdaq will withdraw its decision to suspend the listing of the games firm’s common stock. 

The reverse split plies to all shares that were outstanding at the close of business yesterday.

Atari CEO David Pierce said: “We are pleased that our stockholders have approved this step that will enable our common stock to continue to be listed on the Nasdaq Global Market. We view that listing as an important benefit to our stockholders.”

As reported by MCV, Atari first touted the proposal of a reverse stock split to shareholders in November. In the same month, the company signed a $15million three-year credit agreement with Guggenheim Corporate Funding.

In the past year, the publisher has sold off many of its assets, most recently offloading Melbourne House to Krome Studios in Australia. It has also sold Driver studio Reflections to Ubisoft and Shiny Entertainment to Foundation 9 Entertainment.

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