Android app on Google Play

Alexza Pharma (ALXA) Approves Ten-for-One Reverse Split to Maintain Listing Standards

June 12, 2012 5:01 PM EDT Send to a Friend
Alexza Pharmaceuticals, Inc. (Nasdaq: ALXA) announced a 10-for-1 reverse split of its common stock. The reverse stock split became effective today at 5:01 p.m. Eastern Time and Alexza's common stock will begin trading on The NASDAQ Global Market on a split-adjusted basis when the market opens on Wednesday, June 13, 2012.

Detail:

At the effective time of the reverse stock split, every ten shares of Alexza's issued and outstanding common stock converted automatically into one issued and outstanding share of common stock, without any change in the par value per share. The reverse stock split reduced the number of shares of Alexza's common stock outstanding from approximately 119.6 million to approximately 12.0 million. In addition, the reverse stock split effected a proportionate adjustment to the per share exercise price and the number of shares issuable upon the exercise or settlement of all outstanding options, restricted stock units and warrants to purchase or acquire shares of Alexza's common stock, and the number of shares reserved for issuance pursuant to Alexza's existing equity incentive and employee stock purchase plans were reduced proportionately. No fractional shares will be issued as a result of the reverse stock split, and stockholders who otherwise would be entitled to a fractional share will receive, in lieu thereof, a cash payment based on the closing sale price of the Alexza's common stock as reported today on the NASDAQ Global Market. Alexza's transfer agent will provide instructions to stockholders regarding the process for exchanging shares. Additional information regarding the reverse stock split can be found in Alexza's definitive proxy statement filed with the Securities and Exchange Commission on April 27, 2012.

The purpose of the reverse stock split is to raise the per share trading price of Alexza's common stock to regain compliance with the $1.00 per share minimum bid price requirement for continued listing on The NASDAQ Global Market. As previously disclosed, in order to maintain Alexza's listing on The NASDAQ Global Market, on or before July 30, 2012, the common stock must have a minimum closing bid price of $1.00 per share for a minimum of 10 prior consecutive trading days. There can be no assurance that the reverse stock split will have the desired effect of raising the closing bid price of Alexza's common stock prior to July 30, 2012 to meet this requirement.




You May Also Be Interested In


Related Categories

Stock Splits

Add Your Comment