Thursday, June 26, 2008

MTM pulls the trigger on 1-15 reverse stock split

By Mass High Tech Staff

MTM Technologies Inc. says that its previously disclosed 1 for 15 reverse stock split went into effect today and trading will begin June 26.

Stamford, Conn.-based MTM (Nasdaq: MTMC), which provides IT solutions and services to Global 2000 and midsize companies, plans to append a “D” to its stock listing to indicate the reverse stock split for 20 trading days, company officials said.

MTM Technologies received a delisting notice from Nasdaq on May 14 and requested a hearing, which stayed the suspension of trading and delisting of company stock. The Nasdaq hearing is scheduled for July 10, officials said.

MTM Technologies, founded in 1986, employs 636 workers and provides information technology solutions and services to Global 2000 and mid-size companies. Earlier this month, the company revealed that it received $6.5 million through loans and increased debt facility.

For fiscal 2007, MTM posted a net loss of $32 million on revenue of $274.9 million.