InfoSonics (IFON), a San Diego-based maker of wireless handsets, said pre-market Thursday that it will effect a 1-for-5 reverse stock split, starting Oct. 10, and the company’s common stock will begin trading on a split-adjusted basis on Oct. 11.
Shares fell more than 10% in pre-bell trading on Thursday.
The reverse stock split will reduce the number of shares of the company’s common stock currently outstanding to 3.4 million shares from 16.9 million.
The number of authorized shares of the company’s common stock will remain 40 million shares at this time.
The reverse stock split will increase the market price per share of the company’s common stock to allow the company to maintain the listing of its common stock on the Nasdaq Capital Market.