At the conclusion of the conference call today regarding the third quarter, Sirius XM CEO Mel Karmazin made a crystal clear statement relating to the issue of a Reverse Split. Karmazin stated that the reverse split, if needed, is “to satisfy listing requirements of NASDAQ”.
Thus, should the company get the share price above $1.00 in a manner timely with the NASDAQ requirements, there will be no need to conduct a reverse split. Karmazin requested that shareholders support the measure in the proxy.
Additionally Karmazin noted that the additional authorized shares requested is to provide the company a cushion if needed. Mr. Karmazin has made it a point to avoid dilution as much as possible in the past. His statement at the end of the call seemed to indicate that the company is seeking a cushion, and he encouraged investors to support this measure as well.