NEW YORK (GenomeWeb News) – Rosetta Genomics today said that its shareholders have approved a one-for-fifteen reverse stock split, which will take effect before trading opens Tuesday.
The reverse split was previously approved by the firm's board of directors and is intended to increase Rosetta's share price to satisfy the $1 minimum bid price requirement for remaining listed on the Nasdaq Capital Market. It had been notified by Nasdaq at the end of November that it was not in compliance with the $1 minimum bid rule and that it had until May 29 to regain compliance.
In mid-afternoon trade today, shares of Rosetta were down 9 percent at $.15 per share.
Following the reverse split, Rosetta will have 1,238,642 ordinary shares outstanding.
Rosetta received another warning letter from Nasdaq last month informing the firm that it also didn't satisfy a listing requirement of at least $2.5 million in stockholders equity. It has through June 1 to submit a plan detailing how it will regain compliance. If the Listing Qualifications Staff accepts the plan, Rosetta would receive an extension of up to 180 calendar days, or through Oct. 15, to regain compliance.
The cash-strapped microRNA test developer hasn't reported its first-quarter financial results yet.
It recently signed definitive agreements to sell 8.1 million shares of its stock to certain investors at $0.17 apiece, expecting to raise $1.4 million.