Sphere 3D, the perennially loss-making business that owns Overland Storage and Tandberg Data, is preparing a stock consolidation with a range from 1:2 to 1:10.
The stock is currently trading on Nasdaq at $0.37 – under the required minimum $1 floor price since March 28, 2018. The company received a warning letter from NASDAQ on May 18, which gave it 180 days – until November 26 – to regain compliance.
The proposed stock split was revealed in an SEC filing on September 27, and shareholder approval is sought at an October 26 meeting. If approved the plan can put in place within one year of the meeting.
Sphere 3D is currently aiming to sell its Overland and Tandberg business to a corporate vehicle set up by its chairman CEO Eric Kelly.
We note that Overland Storage performed the NASDAQ stock split dance once before, in April 2014. B&F