Marshall Edwards (MSHL) Board Approves Ten-for-One Reverse Stock Split

February 9, 2010 3:33 PM EST

Marshall Edwards, Inc. (NASDAQ: MSHL) announced that its Board of Directors has approved a reverse stock split of the company's common stock. The Board's decision is intended to ensure that Marshall Edwards is in full compliance with Nasdaq's listing rules. The reverse stock split is subject to stockholder approval.

As previously announced, Marshall Edwards has until March 15, 2010, six months after it was notified by Nasdaq that it was no longer in compliance with Nasdaq's share price listing standard, to regain compliance with such standard. Per Nasdaq rules, Marshall Edwards will be in compliance with the share price listing rule if at any time during the six month cure period it has at least a $1.00 share price and has maintained at least a $1.00 average closing share price over 10 consecutive trading days. Prior to that that time, Marshall Edwards' common stock continues to be listed on Nasdaq and trades as usual. Marshall Edwards is in compliance with all other Nasdaq listing rules.

Marshall Edwards said it believes a reverse stock split would also benefit stockholders because a higher price will make Marshall Edwards' common stock more attractive to a broader range of institutional and other investors.

Once stockholders approve the split, Marshall Edwards' Board intends to complete the reverse stock split ratio of 1-for-10 so that 10 shares of issued and outstanding common stock will convert into one share of common stock. The price of each common share would increase by the same ratio so that a stockholder would have fewer but higher priced shares, keeping the total investment the same when the market opens on the date a split becomes effective. A reverse stock split would not have any impact on the voting and other rights of stockholders. Marshall Edwards said a reverse stock split will have no impact on its business operations.

Marshall Edwards plans to hold a special meeting of stockholders and complete the reverse stock split in March 2010. The time, date, location and other details regarding the special meeting will be communicated to stockholders at a later date via proxy material which will be filed with, and subject to the review by the Securities and Exchange Commission (SEC). Marshall Edwards' Board has preliminarily set February 24, 2010 as the record date for stockholders entitled to receive a proxy statement and vote at the special meeting.

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