New Berlin-based International Monetary Systems Ltd., a business-to-business bartering services firm, recently announced a plan to enact a one-for-six reverse stock split, to be effective Friday, July 17.
"It has always been the goal of IMS to be listed on the American Stock Exchange or NASDAQ," said chief executive officer Don Mardak. "Management believes that this stock split will be a major step toward that goal. We also feel that our company and its share price have been highly undervalued for many months. At the current pricing level, INLM shares are trading at less than our book value and at less than one-half of our net revenue. At the same time, the past two quarters have shown marked improvement in our financial statements, as cash flow has been steadily rising, while debts have been reduced through share buybacks and other loan reductions. The time is right for us to make this move so that more of the investing public has an opportunity to see what our company is accomplishing and the great value that IMS shares represent."
The recent financial improvements are a result of hundreds of thousands of dollars spent on infrastructure last year, as well as numerous cost-cutting measures that were enacted recently, the company said.
