Hovnanian says will request shareholder approval to enable reverse stock split
Hovnanian Enterprises, Inc. announced that it will be requesting shareholder approval at its annual meeting on March 19, 2019 for amendments to its restated certificate of incorporation that will enable the company to conduct a reverse stock split. The details of the proposed reverse stock split are provided in the company's preliminary proxy statement filed with the Securities and Exchange Commission on January 11, 2019. Hovnanian is proposing the reverse stock split primarily in order to address the minimum average closing price criteria set forth in the New York Stock Exchange's Listed Company Manual. On January 9, 2019, Hovnanian received written notification from the NYSE that the average closing price of Hovnanian's Class A common stock over the consecutive 30 trading-day period ended January 7, 2019 was $0.98, which is below the $1.00 minimum average closing price required by the NYSE's continued listing standard.