NEW YORK (GenomeWeb) – WaferGen Bio-systems today announced a one-for-five reverse stock split of shares of its outstanding common stock, according to a document filed with the US Securities and Exchange Commission.
The Fremont, California-based genomics technology firm said in a statement that the reverse split is intended to increase the per-share trading price of its common stock to satisfy the $1.00 minimum bid price requirement for continued listing on the Nasdaq Capital Market. The reverse split will reduce the number of issued and outstanding shares from approximately 18.9 million to approximately 3.8 million.
Shareholders approved the maneuver on May 25 at the company's annual meeting. It comes on the heels of a recently approved merger with Takara Bio USA Holdings. While Wafergen shareholders will receive cash consideration for outstanding equity securities, it will be based on the firm's 2016 consolidated full-year revenues rather than share price.
"Proportionate voting rights and other rights of common stockholders will not be affected by the reverse stock split," the firm said. "In lieu of issuing fractional shares in connection with the reverse stock split, the company will round fractional shares up to the next whole share."