Alliance HealthCare Services, Inc. (NYSE:AIQ) (the “Company” or “Alliance”), a leading national provider of outpatient diagnostic imaging and radiation therapy services, today announced a 1-for-5 reverse split of its common stock. The reverse stock split will be effective December 26th at 5:01 p.m. Eastern Time and Alliance’s common stock will begin trading on the NYSE on a split-adjusted basis when the market opens on Thursday, December 27th, 2012.
Larry C. Buckelew, Chairman of the Board and interim Chief Executive Officer, explained, “Thanks to the ongoing hard work from the entire Alliance team, we are pushing our strategic growth initiatives forward. Since undertaking the interim CEO role in June, we have worked together to implement substantial changes. The continued cost savings improvements and focus on efficiency have translated to improving quarterly results. We continue to strategically enhance our long-term value proposition and our strong cash generation will allow us to make smart investments in our business. We have proactively addressed our debt obligation and the increased financial flexibility this affords enhances our financial profile. We believe the market hasn’t fully recognized these improvements and that our stock remains significantly undervalued. This reverse stock split is the right decision at this time and should better position Alliance in the capital markets. We are in the process of working to transfer our listing to the NASDAQ Global Market, and believe that a higher share price will better enable us to do so in the near term while making our shares more attractive to some institutional investors."
At the effective time of the reverse stock split, every five shares of Alliance’s issued and outstanding common stock will be automatically converted into one issued and outstanding share of common stock, without any change in the par value per share. All fractional shares will be rounded up to the nearest whole share.