California wine company Scheid Vineyards has announced that the 1-for-5 reverse stock split of its Class A and Class B shares has been declared effective with the Secretary of State of Delaware.
The company said that as a result of the stock split, shareholders holding fewer than five shares immediately prior to the effectiveness, and shareholders holding a number of shares not evenly divisible by five, of either Class A or Class B Common Stock, would receive a cash payment of US$9.25 per pre-split share, in lieu of a fraction of a new share.
Scheid has also filed a Form 15 with the Securities and Exchange Commission (SEC) terminating the registration of its Class A shares under the Securities Exchange Act of 1934.
The company said it expects to continue future operations as a non-reporting company, "thereby relieving it of the costs, administrative burdens and competitive disadvantages associated with operating as an SEC reporting company".
As a result of the deregistration process, Scheid's Class A shares were delisted from the Nasdaq SmallCap Market as of the close of business on 12 May.