As expected, Violin Memory has decided on a reverse stock split to avoid NYSE delisting, as its stock price is too low.
The delisting criteria are based on a stock's price being less than $1, on average, for 30 days, and Violin easily passed under that bar back in January, and has stayed mostly under it since. Violin's board has decide on a 4:1 reverse stock split, meaning four Violin shares now become one and, hopefully for Violin, the share price increases fourfold.
This is subject to stockholder approval; surely a formality, but Violin's statement notes: "there can be no assurance that the stockholders will approve the reverse stock split and, even if stockholders approve the reverse stock split, whether this desired effect will occur or be maintained."
The stockholder vote will be at Violin's annual meeting of stockholders, set for June 30, 2016. If approved, the authorized shares of common stock of Violin Memory will be reduced from one billion to 250 million, and the first day of post-split trading on the New York Stock Exchange will be July 6, 2016.
Of course there is still the small (not) matter of NYSE delisting due to insufficient market capitalization. That needs the share price to rise substantially so as to meet the NYSE's capitalization rules; a much tougher nut to crack. ®