Blockbuster investors to vote on reverse split at annual meeting

Dallas Blockbuster said Monday it will ask its shareholders to vote on a reverse stock split at its upcoming annual meeting on May 26.

Blockbuster, which earlier in March warned it may have to file for Chapter 11 bankruptcy protection, also said it was notified by the New York Stock Exchange that its average market capitalization fell below $75 million over a 30 trading day period.

This means the company has 45 days to show to the NYSE it can regain listing compliance over the next 18 months.

At the annual meeting, Blockbuster shareholders will be able to vote on the combination of the company's Class A and Class B common shares into a single class and the approval of a reverse stock split.