Travelzoo board approves stock split plan
Travelzoo board approves reverse/forward stock split to cut number of shareholders and costs
NEW YORK (AP) -- Travelzoo Inc. said Tuesday that its board approved a reverse/forward stock split that could lower its number of shareholders from more than 90,000 to fewer than 10,000 and reduce administrative costs.
The proposal would involve a 1-for-25 reverse stock split of the company's outstanding common stock, followed immediately by a 25-for-1 forward stock split.
The moves would reduce the number of shareholders with a small stake in the company.
Shareholders with fewer than 25 shares of common stock just before the reverse split will not receive fractional shares in the reverse stock split, but will instead have their shares converted into the right to receive a cash payment for their stake.
The company anticipates roughly 655,000 of its outstanding shares will be fractionalized as a result of the reverse stock split and then subsequently sold on the open market.
The proposal still needs shareholder approval.
Shares of Travelzoo, which publishes deals from more than 2,000 travel and entertainment companies, fell 77 cents, or 2.7 percent, to close at $27.43.
