Drkoop.com Slips After Shelving Reverse Split

Drkoop.com, Inc. (Nasdaq: KOOP) slipped 0.09 to 0.50 Wednesday after the company said it canceled plans to hold a meeting for shareholders to vote on a reverse stock split that would have allowed the company to avoid delisting from the Nasdaq composite stock index.

Drkoop.com, which was still trading at about 0.50 early Thursday, is in danger of being removed from Nasdaq because its stock price has been trading below US$1 per share.

Several "significant stockholders" have said they would vote against a split, meaning the plan would not get enough votes if a meeting were held, the company said.

"We will continue our mission to maximize shareholder value by striving to achieve a profitable future," Drkoop.com chief executive officer Richard Rosenblatt said. "We are aggressively pursuing new business opportunities and are pleased with our progress thus far."

The news comes a day after the online health company announced plans to cut 45 jobs and move its headquarters to Santa Monica, California from Austin, Texas.

"This move allows us to materially reduce our corporate overhead and put our people near where our clients and strategic partners are located," said president Ed Cespedes.

Drkoop.com, headed by former U.S. Surgeon General C. Everett Koop, is operating under new management, which stepped in after the company reported a $40.6 million second-quarter loss.

In the third quarter, the company lost $57.9 million, or $1.60 per share, compared with a loss of $20.6 million, or 68 cents, in the year-earlier quarter. Revenue slipped to $2 million from $2.9 million.

The company said the quarter was a "transitional" one, with the new management team installed shortly before quarter's end.