Aastrom has approved a 1 for 8 reverse stock split of the common stock effective on 2/18/10. The reverse stock split should help ASTM’ shares reflect the value created through their clinical programs and might help attract more institutional ownership of the stock. The reverse stock split is intended to increase the per share trading price of ASTM’s common stock to satisfy the $1.00 minimum bid price requirement for continued listing on NASDAQ. Following the reverse stock split, ASTM expects to have approximately 28.3 M shares of common stock outstanding.
ASTM is currently conducting late-stage clinical trials of their cardiac and vascular repair cell technology and should report the results of the limb ischemia clinical trial later this month and the dilated cardiomyopathy study later this year.
- As a result of the recent $13.5 M stock offering and much stronger balance sheet, ASTM now has the resources to complete patient enrollment in these trials, initiate new clinical studies in these indications in 2010 and execute these programs.
ASTM filed an amendment to its articles of incorporation to affect the reverse stock split, which was authorized by shareholders at Aastrom’s annual meeting in 12/09.
- As a result of the reverse stock split, every 8 shares of ASTM’s common stock that were issued and outstanding immediately prior to the opening of trading on 2/18/10 will automatically be combined into 1 issued and outstanding share without any change in the par value of such shares and the number of authorized but un-issued shares of ASTM’s common stock will be proportionally reduced.
- .No fractional shares of common stock will be issued as a result of the reverse stock split and shareholders of record will receive cash in lieu of fractional shares to which they would otherwise be entitled, based upon the closing price of Aastrom’s common stock on 2/17/10.