The agency faces delisting from the Nasdaq exchange for failing to maintain a minimum $1 per share price. The stock has been trading below $1 since mid-February; it closed today at $0.40.
The split ratio has not been determined, but the directors scheduled an Oct. 19 special shareholders meeting to vote on the split and, if approved, it will be completed before the end of the month.
Additionally, the board postponed the regular shareholders' meeting from Oct. 30 to Dec. 14.
Organic has been taking steps toward a potential sale. In late June, the San Francisco-based company, which is backed by Seneca Investments LLC, created a new company, called Cinagro, to absorb the shares of the investment entity Organic Holdings in a move aimed at making the company more attractive to outside investors.
On Aug. 6 Seneca, the joint venture between Omnicom Group and Pegasus Partners II, which is managing the i-shop's holdings, acquired 4,365,000 additional shares of Organic, raising its total stake from 17.3% to 22.1%. -- Mercedes Cardona
Copyright August 2001, Crain Communications Inc.