Citizens Republic Bancorp Inc. in Flint, Mich., is planning a reverse stock split that may help it avoid a delisting.
The $9.7 billion-asset company is planning a 1-for-10 reverse split after the market closes July 1, it said Tuesday. The exchange would leave the company with 39.8 million shares outstanding and 105 million authorized shares.
Citizens has struggled for nearly a year to remain in compliance with the Nasdaq's minimum bid price rule, which calls for the stock to trade for more than $1 per share for ten consecutive days or risk delisting.
The company was first notified about its noncompliance in July, and in January Nasdaq gave the company until July 18, 2011 to become compliant.
Still, the stock has floundered; it has not consistently closed at $1 or more since mid-2010.
The company said that its board considered continued listing requirements, the stock's trading price and current economic conditions when it decided to implement the reverse stock split.