ITUS (ITUS) will reduce the number of ITUS's issued and outstanding common stock from approximately 219 million shares to approximately 8.8 million shares in a 1 for 25 reverse stock split effective at 9:00 am EST on June 26, 2015. Its common shares will begin trading on a post-reverse stock split basis on the OTCQB under the temporary symbol 'ITUSD'.
As a result of the reverse stock split, every 25 shares of ITUS's issued and outstanding shares of common stock will be automatically converted into 1 share of common stock. Itus's shareholders approved a reverse stock split on August 8, 2014 allowing the Board to take such action to facilitate the company's eligibility for listing on The NASDAQ.
"The excessively large number of outstanding ITUS shares has been an ongoing concern raised by investors and others in the financial community. With the announcement of our new business direction and the launch of exciting initiatives such as Anixa, our cancer diagnostics subsidiary, the timing is right to clean up the capital structure of the company as we complete our transformation and position the company for long term success," said ITUS's President and CEO, Robert Berman.
Indeed, on June 23, Itus launched Anixa Diagnostics Corporation, its new subsidiary, to develop and market non-invasive, early cancer screening tests. Dr. Amit Kumar will lead Anixa as its executive chairman and as ITUS's vice-chairman.
"Dr. Kumar has many years of experience in cancer diagnostics, is a foremost expert in the utilization of cutting edge technologies for early cancer screening, and has successfully developed and guided several cancer diagnostic tests through the approval process and to the market. With Dr. Kumar's expertise, together with access to other leading scientists and renowned cancer institutes, we currently have the resources that are necessary to bring non-invasive cancer diagnostic tests to market," said Berman.
Dr. Kumar, who earned a Ph.D. in Chemistry from the California Institute of Technology and a post-doctoral fellowship at Harvard University, has acquired considerable experience in the biotech sector. As president and CEO of CombiMatrix Corp from 2001 to 2010, he oversaw the development and launch of various genomic diagnostics tests in multiple areas, including cancer.
Anixa's cancer strategy focuses on early detection, through the utilization of simple, non-invasive, economical screening tests that are highly accurate as reflected by the two technologies it intends to use for its first cancer screening tests.
One uses a biomarker that has been proven to be effective in the early detection of lung cancer, the number one cause of cancer deaths for men and women. The other technology relies on biomarkers for the early detection of multiple solid tumors at both early and late stages of cancer.
ITUS, which acquires, enforces and makes money from patents with several patent portfolios in areas such as encrypted cellular communications, key-based web conferencing encryption and other fields.
In November, the company inked its 30th settlement and/or license agreement for its J-Channel window frame construction technology patent. In fiscal 2014, or the 12 months ending October 31, 2014, the company completed 27 license agreements in connections with its J-Channel and key based web conferencing patent portfolios.