Reverse Stock Split for Terremark
May 19th, 2005 By: Rich Miller
Terremark, the Miami-based operator of the NAP of the Americas, announced this week that its shareholders had approved a 1-for-10 reverse stock split, which took effect for Tuesday’s trading session on the NASDAQ, where Terremark closed Thursday at $7.28.
The company’s common stock traded below a dollar in recent years, but Terremark was repeatedly able to use its shares to secure loans and reduce debt through debt-for-stock swaps. In March, the company raised $43.8 million in a secondary stock offering, selling 60 million shares at 73 cents a share. At the end of 2004, Terremark purchased the Technology Center of the Americas for $75 million, assuming control of the immense facility that houses its NAP operations, which occupy 240,000 square feet in the 750,000 square foot facility.