Safeguard Scientifics enacts reverse stock split

Safeguard Scientifics Inc., which invests in high-tech and life sciences ventures, said Thursday that it enacted a 1-6 reverse stock split.

The move gives shareholders of the Wayne-based company one new share of Safeguard common stock for every six shares held. The reverse split will reduce the number of shares of outstanding common stock to about 20.4 million from 122.3 million.

"We believe this transaction will broaden Safeguard's appeal to institutional investors, and reduce transaction costs and certain administrative expenses," president and CEO Peter J. Boni said in a statement.

"Moreover, the reverse split comes at a time when Safeguard's strategic execution and focus on fundamentals are strengthening the company's financial position, creating value in our portfolio companies and enhancing long-term shareholder value."

Companies often use reverse stock splits - which reduce the number of outstanding shares and increase the per-share price proportionately - to avoid being delisted.

The reverse split had been approved by Safeguard shareholders in July 2008. The company's previous split was 3-1, in March 2000.

Shares of Safeguard were trading today at $10.88, up 12 cents. In the last 52 weeks, the share price has ranged from $2.04 to $11.94, adjusted for the split.