Bank of Virginia (BOVA) in Midlothian, Va., is moving to shore up its stock price.
The $170 million-asset company on Thursday completed a reverse split of outstanding shares in which Bank of Virginia shareholders received one share for every five they own.
Bank of Virginia said the transaction would help the bank continue to meet requirements of the Nasdaq, which can suspend a company's shares from trading if the average closing price of its common stock is less than $1.00 over a consecutive 30 trading-day period.
To maintain its listing, Bank of Virginia's common stock must have a closing bid of at least $1.00 for a minimum of ten consecutive trading days prior to Oct. 29, according to the bank, whose board authorized the exchange in June.
Shares of Bank of Virginia have traded below $1 for much of the last 12 months, including all but six of the most recent 30 trading days. Its shares closed at 76 cents Wednesday but after the split were trading at $3.69 late Thursday.
In August, Bank of Virginia announced that Cordia Capital, its largest shareholder, would invest $3 million in the bank as part of a
