InVivo Therapeutics Holdings board has approved a 1-for-4 reverse stock split of its issued and outstanding common stock in preparation for its planned uplisting to the NASDAQ Capital Market.
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The company anticipates the reverse stock split to become effective and its common stock to begin trading on a post-split basis at the open of trading on April 8, 2015, contingent upon approval from the Financial Industry Regulatory Authority (FINRA).
"The execution of this reverse split represents an important step in achieving an essential corporate objective – uplisting to a national securities exchange," said Mark Perrin, chief executive officer and chairman.
"Becoming NASDAQ-listed allows companies to attract a broader range of institutional investors and to increase share liquidity. I, together with the rest of the Board, am pleased to be moving forward towards such an important goal in our corporate evolution.
"This important step in changing our capitalization is yet another key element in our transformation."
At the effective time of the reverse stock split, every four shares of issued and outstanding common stock will be converted into one newly issued share of common stock.
Any fractional shares resulting from the reverse stock split will be rounded up the nearest whole share. A new CUSIP will be assigned to the company’s common stock after the reverse stock split becomes effective.
The reverse stock split is intended to fulfill InVivo’s requirements for listing to the NASDAQ Capital Market since the requirements include that a company’s common stock must maintain a minimum closing price of $3.00 for at least five trading days.
There can be no assurance that NASDAQ will approve the company’s application for listing after the reverse stock split is completed. ■
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