North Valley Bancorp in Redding, Calif., is planning a 1-for-5 reverse stock split to remain in compliance with Nasdaq listing policy.
The $895 million-asset company said the split would take place after the close of business Dec. 28, reducing the number of common shares outstanding to about 6.8 million. Owners are to get cash for fractional shares.
Michael Cushman, the company's president and chief executive officer, said in a press release that the main motivation for the split was to "remain above the minimum price required for our continued listing on the Nasdaq Global Select Market." He said the company hopes the split would also "encourage greater interest in our common stock."