Nashua high-tech firm in reverse stock splitBy PAUL FEELY
New Hampshire Union Leader
January 04. 2014 12:36AM
NASHUA — A global email delivery services provider, headquartered in Nashua, announced Friday that its common stock is now trading at a split-adjusted price.
SMTP, Inc. (SMTPD) issued a release announcing its common stock is trading on the OTCQB on a reverse stock split adjusted basis, a corporate action where a company reduces its total number of outstanding shares.
A reverse stock split involves a company dividing its current shares by a number such as 5 or 10, typically referred to as a 1-for-5 or 1-for-10 split. A reverse stock split is the opposite of the more conventional 'forward' stock split, which increases a company's number of outstanding shares. A reverse stock split is also referred to as a stock consolidation or share rollback.
The new CUSIP number for SMTP, Inc., is 784589 202 and will trade with a "D" added to the symbol (SMTPD) for 20 trading days (backdated to Dec.27, 2013) to designate trading on a post-reverse split basis. The stock will resume trading under the symbol "SMTP" on Jan. 28, after the 20-trading day period has expired.
SMTP had previously filed a Certificate of Amendment to its Certificate of Incorporation with the Secretary of State in Delaware for a 1-for-5 reverse stock split of its common stock, which took effect at 5 p.m. on Dec. 26.
SMTP's dividend policy remains unchanged. The company will continue to return cash to shareholders through regular quarterly dividend payments, and the company will continue to pay out similar total dividends in the future, adjusting the per share amount to reflect the stock split. The company's most recent quarterly dividend of $.024 per share, adjusted for the reverse stock split, would have been $0.12 per share.
SMTP, Inc., a provider of email delivery services with a focus on marketing email delivery systems, moved its headquarters from Cambridge, Mass., to 1 Tara Blvd., Suite 200 in Nashua last month.