Drkoop.com, Inc. (Nasdaq: KOOP) slipped0.09 to 0.50 Wednesday after the company said it canceled plans to hold ameeting for shareholders to vote on a reverse stock split that would haveallowed the company to avoid delisting from the Nasdaq composite stock index.
Drkoop.com, which was still trading at about 0.50 early Thursday,is in danger of being removed from Nasdaq because its stock pricehas been trading below US$1 per share.
Several “significant stockholders” have said they would vote against asplit, meaning the plan would not get enough votes if a meeting were held,the company said.
“We will continue our mission to maximize shareholder value by striving toachieve a profitable future,” Drkoop.com chief executive officer RichardRosenblatt said. “We are aggressively pursuing new business opportunities and arepleased with our progress thus far.”
The news comes a day after the online health company announced plans to cut 45 jobs andmove its headquarters to Santa Monica, California from Austin, Texas.
“This move allows us to materially reduce our corporate overhead and put ourpeople near where our clients and strategic partners are located,” saidpresident Ed Cespedes.
Drkoop.com, headed by former U.S. Surgeon General C. Everett Koop, isoperating under new management, which stepped in after the company reporteda $40.6 million second-quarter loss.
In the third quarter, the company lost $57.9 million, or $1.60 per share,compared with a loss of $20.6 million, or 68 cents, in the year-earlierquarter. Revenue slipped to $2 million from $2.9 million.
The company saidthe quarter was a “transitional” one, with the new management team installedshortly before quarter’s end.