ebix.com Inc., an international supplier of software and e-commerce solutions to the property and casualty insurance industry, announced that its Board of Directors has approved and recommended to its stockholders a 1-for-8 reverse stock split of its outstanding shares of common stock. This action is intended to return ebix to compliance with the continued listing standards of the Nasdaq SmallCap Market, in particular the minimum bid price requirement.
ebix received a Nasdaq Staff Determination on August 20, 2002 indicating that ebix’s common stock fails to comply with the $1 per share minimum bid price requirement for continued listing set forth in Marketplace Rule 4310 (c)(4), and that its common stock is, therefore, subject to delisting from the Nasdaq SmallCap Market. ebix has requested a hearing before a Nasdaq Listing Qualifications Panel to review the Staff Determination. A date for the hearing has not yet been set. ebix has been advised that Nasdaq will not take any further action to delist the common stock pending the conclusion of that hearing. There can be no assurance that the Panel will grant ebix’s request for continued listing.
At a Board of Directors meeting on August 22, 2002, the Board determined that a reverse split in the ratio of 1-for-8 is the best option to meet the minimum bid price requirement and is in the best long-term interest of ebix and its stockholders. ebix’s stockholders will be asked to approve the reverse stock split at a special meeting to be held on September 30, 2002. ebix plans to affect the reverse stock split following stockholder approval. The record date for determining stockholders eligible to vote at the special meeting will be the close of business on September 3, 2002.