BluePhoenix Solutions (NASDAQ: BPHX), the leader in value-driven legacy modernization, today announced that a one-for-four reverse split of its outstanding ordinary shares will become effective on Wednesday, December 28, 2011.
Following the reverse split, the number of the Company's authorized ordinary shares will decrease from 40,000,000 to 10,000,000, the number of outstanding ordinary shares is expected to decrease from 25,238,619 to approximately 6,262,998 (subject to a final calculation reflecting the rounding of fractional shares) and the par value per ordinary share will increase from NIS 0.01 to NIS 0.04. All fractional shares resulting from the reverse split that are one-half share or more will be increased to the next higher whole number of shares and all fractional shares that are less than one-half share will be decreased to the next lower whole number of shares.
The reverse share split is being executed with the goal of regaining compliance with NASDAQ's minimum bid price requirement of $1.00 per share. In general, to regain compliance, the closing bid price of the Company's shares must meet or exceed $1.00 per share for at least ten consecutive business days. The Company believes that continued listing on the NASDAQ Global Market will give it greater access to public capital markets and will afford its shareholders greater liquidity with respect to their shareholdings in the Company.
About BluePhoenix Solutions
BluePhoenix Solutions (NASDAQ: BPHX) is the leading provider of value-driven legacy IT modernization solutions. The BluePhoenix portfolio includes a comprehensive suite of tools and services from global IT asset assessment and impact analysis to automated database and application migration, rehosting, and renewal. Leveraging over 20 years of best-practice domain expertise, BluePhoenix works closely with its customers to ascertain which assets should be migrated, redeveloped, or wrapped for reuse as services or business processes, to protect and increase the value of their business applications and legacy systems with minimized risk and downtime.