ClickNsettle.com announced Thursday it received a warning from Nasdaq and could be booted from the U.S. stock exchange. The Great Neck, N.Y.-based online dispute resolution company, whose stock has been lower than $1 since January, plans to request a hearing before the Nasdaq Listing Qualifications Panel to appeal a delisting.
In an effort to boost its stock price above the minimum $1 price the exchange requires, ClickNsettle scheduled a special meeting of shareholders for July 5 to consider a proposal for a 1-for-3 or a 1-for-4 reverse stock split. Though such splits theoretically boost the price of stock, they often backfire, and the stock sinks further. In a single day in April, shares of Quokka Sports53 percent after a 1-for-50 reverse stock split failed to alleviate investors' concerns about the short-term prospects for the company.