Focuses market pricing to peers and comparables
NeoStem, Inc. (NYSE MKT: NBS) effected a 1-for-10 reverse stock split of its common stock which will be effective for trading purposes as of the commencement of trading on July 16, 2013.
As of that date, each 10 shares of issued and outstanding common stock and equivalents will be converted into 1 share of common stock. In addition, at the market open on 7/16/13, the common stock will trade under a new CUSIP number 640650 404 and the ticker symbol, NBS, will remain unchanged.
- The number of authorized shares and the par value per share will remain unchanged;
- No fractional shares will be issued in connection with the reverse stock split;
- Holders of fractional shares will be paid out in cash <approximately $5K> for the fractional portion.
NBS stockholder will receive instructions from its transfer agent, Continental Stock Transfer and Trust Company, as to procedures for exchanging existing stock certificates for new certificates or book-entry shares and for the receipt of cash proceeds in lieu of fractional shares.
The Bottom Line: As a result of the reverse stock split, the exercise of each outstanding warrant and option would entitle the holder to 1/10 of a post reverse split share. The number of outstanding common shares will be reduced to approximately 19,664,790 from 196,643,748.
The number of outstanding options and warrants will be adjusted accordingly, with outstanding options being reduced from 26,366,633 to approximately 2.6 M and outstanding warrants being reduced from 54,297,826 to approximately 5.4 M … "killing" most of all … the overhangs!
NBS has been on a volume roll for these past four (4) days jumping from $0.56 to $0.58 to $0.61 finally settling at $0.58 on Thursday on strong volumes <293 K and 1.98 M, 2.34 M and 2.97 M>. It also - "seems" - that a 200 K block was bought which settled the $0.58 - short on the stock!
NBS should open UP on Friday, 6/12/13. NBS has a pipeline of news to validate this event … to the future validating the reverse move!
This common practice reverse will elevate the share pricing but also actualize the peer and comparable models to reflect the PCT business opportunity, the advancing AMR-001 trial and positioning of NBS as a sector leader.
This "event" … also validates Dr. Robin Smith's … leadership of NBS and its role in fermenting the interests of hope in the sector and elevates NBS ability to attract greater institutional investment by adjusting the out-standing share count, over-hangs of options and warrants … which had been limited by the past pricing.
The reverse should also provide eligibility for NBS to be included in the various indexes used as an unbiased barometer for the small-cap value segment delivering representation institutional investors' need for asset allocation decisions.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.