International Monetary Systems, Ltd. announced that it is executing a one-for-ten reverse stock split approved by shareholders at the annual meeting on May 7, 2013 to be effective on August 1, 2013.
As a result, the company’s stock symbol will change from ITNM to ITNMD for the following twenty business days. After that, the symbol will revert to ITNM.
IMS’ stock has suffered from a slide in value over the last year, from a high of $2.25 per share to $.88 as of the writing of this article.
Traditionally companies perform a reverse split to boost the value of their stock. If successful, we should see IMS’ stock increase in value 10x to around $8.80 per share.
The drop in value may be due to a similar drop in net income for the company since 2011, though gross revenue for the company remains relatively unchanged over the last four years.