GRAVITY to Effect a 1-for-8 Reverse ADS Split
May 11 2015 - 6:15AM
Gravity Co., Ltd. (Nasdaq:GRVY) ("Gravity" or "Company") announced
that it will effect a ratio change of its American Depositary
Shares ("ADSs") previously approved by the Company's Board of
Directors at a meeting held on April 22, 2015. The company is
changing the ratio of its ADS to common share from four ADSs to one
common share (4:1) to one ADS to two common shares (1:2), effective
as of the start of trading on Monday, May 11, 2015. The ratio
change will have the same effect as a 1-for-8 reverse split of its
ADSs.
As a result of this ratio change, the total number of ADSs
outstanding will be decreased from 13,095,692 to 1,636,961 and
there will be no change to its common shares. The reverse ADS split
is intended to increase the market price per ADS to allow the
Company to maintain the listing on The NASDAQ Capital Market.
However, the Company can give no assurance that this event will
result in meeting the minimum bid price requirement of The NASDAQ
Capital Market.
Background
As previously disclosed in a Current Report on Form 6-K dated
June 3, 2014, the Company was notified by NASDAQ, on May 28, 2014,
that it no longer satisfied the minimum bid price requirement for
continued listing set forth in Nasdaq Stock Market Rule 5450(a)(1),
as the bid price of the Company's ADS had closed for 30 consecutive
business days below US$1.00 per ADS. In accordance with Nasdaq
Stock Market Rule 5810(c)(3)(A), the Company was granted a grace
period of 180 calendar days, or until November 24, 2014, to regain
compliance. Subsequently, the Company disclosed in a Current Report
on Form 6-K dated November 25, 2014, that it received a positive
determination from the Listing Qualifications department of The
NASDAQ Stock Market, granting approval of the Company's request to
transfer its listing to The NASDAQ Capital Market from The NASDAQ
Global Market. As a result, the Company was granted its second
grace period of 180 calendar days, or until May 26, 2015 to regain
compliance with NASDAQ.
About GRAVITY Co., Ltd.
Based in Korea, Gravity is a developer and publisher of online
and mobile games. Gravity's principal product, Ragnarok Online™, is
a popular online game in many markets, including Japan and
Thailand, and is currently commercially offered in 71 countries and
markets. For more information about Gravity, please visit
http://www.gravity.co.kr.
Forward-Looking Statements:
Certain statements in this press release may include, in
addition to historical information, "forward-looking statements"
within the meaning of the "safe-harbor" provisions of the U.S.
Private Securities Litigation Reform Act 1995. Forward-looking
statements can generally be identified by the use of
forward-looking terminology, such as "may," "will," "expect,"
"intend," "estimate," "anticipate," "believe" "project," or
"continue" or the negative thereof or other similar words, although
not all forward-looking statements contain these words. Investors
should consider the information contained in our submissions and
filings with the United States Securities and Exchange Commission
(the "SEC"), including our annual report for the fiscal year ended
December 31, 2014 on Form 20-F, together with such other documents
that we may submit to or file with the SEC from time to time, on
Form 6-K. The forward-looking statements speak only as of this
press release and we assume no duty to update them to reflect new,
changing or unanticipated events or circumstances.
CONTACT: Mr. Heung Gon Kim
Chief Financial Officer
Gravity Co., Ltd.
Email: kheung@gravity.co.kr
Ms. Ji Hee Kim
IR Manager
Gravity Co., Ltd.
Email: ircommunication@gravity.co.kr
Telephone: +82-2-2132-7800
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