Somaxon (SOMX) Announces One-for-Eight Stock Split

October 11, 2012 8:06 AM EDT
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Somaxon Pharmaceuticals, Inc. (Nasdaq: SOMX) approved a 1-for-8 reverse stock split of its common stock and a decrease in the number of authorized shares of its common stock from 100,000,000 to 25,000,000 shares. The reverse stock split and the decrease in the number of authorized shares of common stock were authorized by Somaxon's stockholders at a special meeting held on October 5, 2012. The reverse stock split will become effective as of 5:00 p.m. Pacific Time on October 11, 2012 and Somaxon's shares will trade on a post-split basis beginning on October 12, 2012. The new CUSIP number for Somaxon's common stock will be 834453 201.

In connection with the reverse stock split, every eight shares of Somaxon's issued and outstanding common stock will automatically be combined into one issued and outstanding share without any change in the par value of the shares. Stockholders of record will receive cash in lieu of fractional shares to which they otherwise would be entitled based upon the closing sale price per share of Somaxon's common stock on October 11, 2012.

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Stockholders Got Screwed
Chris on 2015-07-15 16:49:48
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This is a great example of why we never should have bought "penny stocks"
Make the math simple what Somaxon did before the acquisition is if I bought 800 dollars worth of stock, I now have 100 dollars of the stock so they have "stolen" 700 dollars from me. I didn't lose it on the trading floor, I lost if because these crooks just "took it" in the form of the Reverse Split.

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