Rubicon announces reverse stock split

Rubicon Technology Inc of Bensenville, IL, USA (which makes monocrystalline sapphire products for optical systems and specialty electronic devices) has filed an amendment to its certificate of incorporation to effect a reverse stock split of its outstanding common stock, automatically converting every ten pre-split shares held by stockholders into one share, as of 5 May. The number of shares of authorized common stock has also been reduced from 40,000,000 to 8,200,000. The amendments were recommended by Rubicon’s board of directors and approved by stockholders at their annual meeting on 3 May.

Rubicon’s common stock will continue to trade on The NASDAQ Capital Market under the symbol ‘RBCN’ and under a new CUSIP number 78112T206.

Stockholders will receive cash in lieu of any fractional shares resulting from the reverse stock split in a proportionate amount equal to about $0.78 per pre-split share. The price per share is based on the average closing price of the common stock for the 30 trading days immediately preceding the effective date of the reverse stock split.

The reverse stock split is intended to increase the per-share trading price of Rubicon’s common stock to satisfy the $1 minimum bid price requirement for continued listing on The NASDAQ Capital Market. As disclosed on 19 April, Rubicon received a staff determination letter from the Listing Qualifications Department of NASDAQ saying that it had failed to regain compliance with this minimum bid price requirement. On 26 April, Rubicon requested a hearing before a NASDAQ listing qualifications panel, which is expected to be scheduled by NASDAQ within 45 calendar days from the date of the request.

Based on discussions with the NASDAQ staff, Rubicon’s board believes that effecting the reverse stock split and demonstrating compliance with the minimum bid price requirement during the appeal process will help it to maintain its NASDAQ listing.