NEW YORK, Sept. 17 – Proteomics company Large Scale Biology Corporation has said it was considering using a recently announced easing of trading restrictions to repurchase up to one million shares of its common stock in the open market.
“The limited share repurchase plan was authorized in connection with the upcoming resumption of trading following this week's lengthy suspension of market activity," LSBC’s CEO Robert Erwin said in a statement released on Friday.
In an effort to calm nervous investors following Tuesday’s attacks on the World Trade Center and the Pentagon, the Securities and Exchange Commission last week announced that it would loosen certain trading restrictions on volume and timing requirements to allow publicly traded companies to buy up their shares.
Companies will also be allowed to repurchase their shares without adverse accounting consequences.
The move could help companies with thin trading volumes and battered share prices to shore up their stocks.
Last Monday, LSBC of Vacaville, Calif., closed unchanged at $3.39 with zero shares trading hands. The company is trading well off its 52-week high of $33.50 reached last September.
Technology heavyweights, such as Cisco Systems, have also reportedly said that they would use the ease in restrictions to repurchase shares when the market reopens on Monday.
The US stock markets were closed from Tuesday through Friday last week, following the terrorist attacks on the World Trade Center and the Pentagon.
The attacks were the largest to ever occur on American soil and resulted in the longest market closure since 1933.
In anticipation of a rocky market opening on Wall Street, global markets were off on Monday. Japanese stocks plunged Monday, with the Nikkei plunging five percent, while European bourses were also trading broadly lower.