The company plans to de-list if it has fewer than 300 shareholders. And since management appears to want to reduce the number of shareholders to that level, it is trying to shake out small shareholders by offering a cash incentive which is higher than the current share price: every shareholder who owns less than 100 shares will receive $7.65 for each of their shares - but the stock trades for just $6 at the time of writing (though it does bounce around)!
Here is the exact wording of the director-approved plan, as per the company's 10-Q:
The deregistration will be accomplished by a reverse 1:100 stock split of the Company’s common shares. All shareholders owning fewer than 100 shares prior to the reverse stock split would be cashed out by the Company at a price of $7.65 per pre-split share. The reverse split will be followed immediately by a 100:1 forward split of the Company’s common shares, which will return all shareholders owning more than 100 shares to the same number of shares they owned prior to the reverse and forward split transactions. If, after completion of the reverse and forward stock splits, the Company has fewer than 300 shareholders of record, the Company intends to terminate the registration of its common stock under the Securities Exchange Act of 1934, as amended. If that occurs, the Company will be relieved of its requirements to comply with the Sarbanes-Oxley Act of 2002 and to file periodic reports with the SEC, including annual reports on Form 10-K and quarterly reports on Form 10-Q.
Shareholders still have to vote to ratify the matter, however, the company is controlled by its managers, so the vote is not likely to fail. Assuming a shareholder could buy 99 shares for $6, a $163 profit minus transaction costs is there for the taking. (I say "assuming" because the stock is not very liquid. Nevertheless, the recent trading pattern of the stock suggests this is possible.) For most investors, such a move may not be worth the effort, but for others, the possibility of a 27% return exists if the "small shareholder buyout" takes place within a year.