NEW YORK (GenomeWeb News) – The shareholders of Vermillion have approved a 10 for one reverse stock split of the firm’s common shares.
The reverse split is scheduled to become effective at the close of business on March 3, the Fremont, Calif.-based firm said in a statement after the close of the market on Friday. Each ten shares of Vermillion common stock will be converted into one share under the plan, which will simultaneously increase the company’s stock price by a factor of 10.
Vermillion’s shares closed Friday at $.41 on the Nasdaq.
In September, Nasdaq notified Vermillion that it was not in compliance with listing requirements because it had failed to maintain a minimum bid price of $1 over the previous 30 business days.
Vermillion was previously called Ciphergen. Trading opened for the company under the symbol "VMRL" on August 27, when it was trading at just over $.80 a share.
Under Nasdaq rules, the firm has until March 4 to trade above the $1 minimum listing price for 10 or more consecutive business days.
Following the reverse split, Vermillion will have approximately 6.4 million shares outstanding of its common stock. In addition, the firm said that the reverse split will affect all shares of its common stock, including underlying stock options outstanding and warrants immediately prior to the reverse split.
"We believe this stockholder approval and reverse stock split will help attract a greater level of interest among investors and analysts,” said Gail Page, president and CEO of Vermillion. “It comes at an excellent time given the advances being made in the clinical and commercial development of our peripheral arterial disease (PAD) and ovarian cancer diagnostics programs."