NEW YORK (GenomeWeb News) – CombiMatrix announced after the close of the market on Tuesday that shareholders approved the second tranche of a private placement that seeks to raise $2.5 million in total.
Shareholders also approved a one-for-10 reverse stock split, the Irvine, Calif.-based company said.
The private placement of CombiMatrix's Series A Preferred Stock was announced in October, and the firm said on Tuesday that it raised gross proceeds of $1.05 million in the first tranche. Approval for the second tranche was approved at a special meeting of shareholders on Nov. 29.
Shareholders also approved the reverse stock split, which became effective at the close of business on Tuesday. A one-for-10 reverse split of CombiMatrix's Nasdaq-listed warrants occurred at the same time.
The reverse split was carried out in order for CombiMatrix to comply with Nasdaq listing requirements, it said. During the summer Nasdaq warned the company that it was not in compliance with a requirement calling for minimum bid of $1 per share for at least 30 consecutive business days.
The reverse split increases the number of shares that CombiMatrix has for issuance.
It said that it expects its split-adjusted shares of common stock and split-adjusted Nasdaq-listed warrants to begin trading on the Nasdaq Capital Market at the start of the trading day on Dec. 5.