Lpath, Inc. (NASDAQ:LPTN) has announced a reverse split of 1-for-14 shares of common stock. As of Monday 13th June, Lpath’s common equity will trade on these new terms. Consequently, the value of the outstanding common stock will decrease from 33.1 million to 2.36 million.
Why the move is important
The decision to split Lpath’s shares comes after its board’s engagement with a financial advisor to help it come up with ways of complying with the recent NASDAQ listing requirements. Mergers, Business combinations, sale of some or all assets, equity and debt financings as well as licensing arrangements were all possible strategies, but the board finally agreed on the reverse split. However, the strategic process is still ongoing and several transactions with third parties will be conducted. Whether the process continues successfully or not, the focus on Lpath for now is to maintain its listing on NASDAQ. With the reverse stocks, common stock will be expected to close at a value that is more than $1.00 for 10 consecutive days before 5th July this year.
What will change and what will remain the same
The effect of this reverse split is that every 14 outstanding and issued shares will become one share of common equity. Fractional shares will be rounded up, and warrants, equity-compensation plans as well as stock options will be adjusted accordingly. Authorized shares will not be affected. The ticker symbol “LPTN” will remain unchanged but 548910405 will be the new CUSIP (Committee on Uniform Securities Identification Procedures) number for Lpath’s common stock. Exchanging of stock certificates between the old and the new stock is not necessary, but shareholders can do so if they wish.
For any further information on the reverse split, shareholders can contact Nevada Agency and Transfer Company, which is Lpath’s transfer agent on the line (775) 322-0626. They can also contact their stock brokers or visit the site www.sec.gov to view Lpath’s definitive proxy filed on 28th April 2016.
