Hospital and surgery center company Foundation Healthcare Inc. is eyeing a reverse stock split in order to boost the price of its stock enough for a listing on a major exchange.
The Oklahoma City-based company will ask shareholders at its annual meeting in May to allow its board of directors to consider a reverse stock split that would reduce its number of outstanding shares, thereby boosting the price of the stock. The company is considering reducing shares from a one-to-three ratio up to a one-to-ten ratio.
The goal of the reverse stock split would be to increase the price per share of Foundation’s stock with the hopes of getting the company listed on a major exchange such as the New York Stock Exchange or the Nasdaq Stock Market, Foundation CEO Stanton Nelson said.
Since a reverse merger with the sleep diagnostic company Graymark Healthcare Inc. last year that allowed Foundation to become a public company without the expense of an IPO, the company has produced solid financial results and wants to move its stock from the over-the-counter market to a major exchange, Nelson said.
Graymark’s stock traded on the Nasdaq stock market until November 2012, when it fell off the exchange for falling below the minimum stock listing price requirements. Since Foundation and Graymark merged, the newly formed company has sold or closed about 50 sleep diagnostic centers to focus more on the business of managing and developing hospitals and surgery centers.