NEW YORK (GenomeWeb) – Great Basin Scientific late Wednesday announced it will implement a 1-for-80 reverse split of its common shares on Sept. 16.
At that time, every 80 shares will be consolidated into one newly issued and outstanding share, reducing the total number of outstanding shares to about 1 million from the current 78.4 million. Proportional adjustments will be made to outstanding preferred shares, stock options, warrants, and equity incentive plans, Great Basin said.
The company announced its shareholders had approved the stock split at a recent annual meeting. At the same meeting, however, the company failed to get a majority of stockholders to agree to a proposal increasing the number of authorized shares of Great Basin common stock to 350 million from 200 million.
On Sept. 7, Great Basin received a new delisting warning from the Nasdaq after its stock traded below $1 per share for 30 consecutive days, and after two previous warnings issued in October 2015 and again in April 2016. The firm will now have 180 days to maintain a minimum bid price of $1 for 10 consecutive days, and said it would seek shareholder approval for the reverse stock split as part of a plan to regain compliance with the listing rules.
Great Basin's shares are down 17 percent to $.10 in morning trading on the Nasdaq.