China Wind completes reverse stock split

Wuxi, China-based China Wind Systems (OTC:CHWY) said today it completed a one-for-three reverse stock split—the first step in applying to list on a major U.S. exchange.

With the move, the company's trading symbol changed from CWSI to CHWY on the Over-The-Counter Bulletin Board exchange.

China Wind supplies forged rolled rings, wind tower flanges and gear rims—all components of gearboxes—to wind power and other industries in China (see China Wind gets ISO approval for new facility). 

The company told the Cleantech Group in August that the reverse stock split was intended to boost the company's share price to at least $4 per share—the minimum price required on the Nasdaq exchange (see China Wind eyes the Nasdaq with reverse stock split). In addition, the split aimed to reduce outstanding shares of common stock from 46 million shares to 15.3 million.

Trading on a major exchange could help the China Wind attract institutional investors, company officials said.

Once China Wind completed the stock split, the company planned to submit applications to the Nasdaq or New York Stock Exchange Amex Equities. Company officials said the process of moving to a bigger exchange could then be finalized in four to six weeks.