Baltimore Technologies said it plans to seek shareholder approval for a 1-for-10 share consolidation that would exactly reverse a share split carried out in May 2000.
The Irish security software company also said it plans to ask shareholders to approve a scheme offering free share options to employees because the recent sharp fall in the share price has rendered previous options based on the market price worthless.
The measures will be voted on by shareholders at an meeting on December 16th.
"Baltimore already has a number of schemes based on granting options at the prevailing market price," said chairman Mr Peter Morgan.
"With the unforeseen and dramatic change in the global equity markets, options based on a market price no longer provide a suitable long-term incentive for employees and the proposal is to create a 'nil cost' share plan open to all existing employees".
The group said there are no proposals to increase the existing overall limit of 15 per cent of the issued share capital for the grant of options and all employees will be given the opportunity to exchange their current market price based options at the rate of 2-to-1 for the nil cost options.
Baltimore said at the time of the share split in 2000 the company's shares traded from January 2000 to May 2000 in the range of £46.78 to £137.50 sterling but over the past six months the share price has been 3.5 to nine pence. "In light of this the company is proposing that it reverses the May 2000 10 for 1 split," Baltimore said.
AFP