Company E is a large company with stock liquidity problems. Over the last couple of years, share liquidity has dropped significantly due to weak earnings results and subsequent analyst downgrades. In addition, the Company had three stock classes, each with small floats.
The company had established a buyback program to aid in the liquidity issue, however, this resulted in the cancellation of many of the shares that were repurchased. Still lacking liquidity and without an effective plan to improve the situation, the company was particularly vulnerable to the fickleness of the market and the volatility of their industry.
i-advize suggested they put the buyback program on hold, merge their three shares into one stock class and launch an aggressive IR effort to promote the stock. The company implemented a tough strategy to strengthen their financial situation, which included:
Via these measure, the Company greatly enhanced their liquidity and were admitted in the local stock exchange. They are currently in the process of a full NYSE listing.