The McClatchy Co. proposed a reverse stock split Tuesday in an effort to boost its share price.
The proposal by Sacramento-based McClatchy follows warnings that the company could lose its New York Stock Exchange listing if the price consistently falls below $1.
McClatchy, which owns The Sacramento Bee and 28 other daily newspapers, outlined the plan to issue one new share of stock for every five shares outstanding. The plan could be changed to exchange as many as 25 existing shares for one new share. By having fewer shares in circulation, the company is aiming to shore up the per-share price.
Shareholders would have to approve the plan at the company’s next annual meeting, set for this spring on a date to be determined.
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McClatchy shares closed Tuesday at $1.26, up 4 cents, in regular trading. In after-hours trading, the price fell 4 cents.