Ashford.com shareholders approved a 1-for-10 reverse stock split, the company announced. Houston-based Ashford said it will complete the reverse split, through which shareholders will exchange 10 shares of Ashford's current stock for its new issue, before the opening of trading on Oct. 15. The company will not issue fractional shares of stock, but will instead pay cash for those fractional shares.
The Nasdaq national market warned the luxury goods e-tailer in April that it would delist Ashford shares unless the company was able to boost its stock price to above $1 a share. The company's stock, which has traded under $1 a share for most of the year, was up 1 cent to 17 cents in late trading on Wednesday. Although reverse splits have become more popular as struggling companies such as Excite@Home have attempted to maintain their position on the Nasdaq, such splits often result in a further drop in stock value.