wow, thanks for bringing this up. I found a nice little tid bit from a recent article. I don't want to see a 1 for 44 though.
Reverse Stock Split and Bolstered Cash Position: First Steps To Uplist
Disclosed in a press release a day prior to the deal with Celgene, on Monday, November 18th, Alliqua outlined its intentions to uplist to a national securities exchange whilst announcing that there will be a 43.75:1 reverse stock split. As a result of the Reverse Split, the number of outstanding common shares was reduced from 310,993,023 to approximately 7,108,412, ultimately bringing the share price to an open price of $5.00/share, which satisfies the condition of a minimum share price required by all national exchanges. Uplisting to a national exchange like the NYSE-MKT or NASDAQ-CM generates advantages in broader visibility, increased liquidity and accessibility to the deep pockets of institutional investment firms and retail brokers. This has been witnessed many times throughout the past, with a great example of the benefits uplisting offers being realized by Organovo (ONVO), a company whose share price soared from $3.90 to $8.50 on the news of the uplist alone. This was accommodated with an influx of institutional investment and substantial increase in the trading volume, facilitating the stock to trade at its current levels today.
There's smart money behind this stock. I wouldn't expect a mistake with a reverse split. It would be accompanied by some other liquidity or sales event that would chase off the shorts. Check out ALQAD. Did a 1:44 reverse split with an announcement of CELG buy-in which doubled the value in about 48 hours. Could be that Baker Bros take a larger position...
I sent a copy of this post from wazoo to ARDM.
You longs should do the same.
Let ARDM know, if you agree.
Sentiment: Strong Buy
According to the NASDAQ guidelines for company exchange listing qualification that 'walktheline43' posted and I thank you for doing that, a RS would need to have a ratio of about 15:1 at $2.52 a share to 25:1 at $4.15 a share.
The problem for shareholders with this is the consequences if there is a considerable market correction or more likely if Shorts move in on the stock and run it down. In the later scenario an investor could see the price per share drop to the low $1's or in current pricing to $0.05 a share.
I would rather see the pricing stay like it is, since the company recently gave up 35% of the company in exchange for a $90M safety net for the marketing of the one or two products in the pipeline. Approval of Phase 3 for the development and commercialization of Aradigm’s proprietary formulations of the antibiotic ciprofloxacin, Pulmaquin and Lipoquin, would possibly run the stock up to that lower 15:1 RS valuation of $2.52 a share without a Reverse Split. Therefore avoiding the significant loss of shares and the shareholders would benefit significantly with a 15X profiting.
In the case of a Reverse Split, the stock would lose its speculative element and the possibility of a handsome reward would be erased.
Wazoo, the Company wants to get listed on a bigger board so that the institutions and other fund managers can buy shares. that is the future. in order to do this there are certain minimum stock price rules that must be met. for the Q it's this plus other stuff:
Listing Requirements for All Companies
Each company must have a minimum of 1,250,000 publicly-traded shares upon listing, excluding those held by officers, directors or any beneficial owners of more then 10% of the company. In addition, the regular bid price at time of listing must be $4, and there must be at least three market makers for the stock. However, a company may qualify under a closing price alternative of $3 or $2 if the company meets varying reequirements. Each listing firm is also required to follow Nasdaq corporate governance rules 4350, 4351 and 4360. Companies must also have at least 450 round lot (100 shares) shareholders, 2,200 total shareholders, or 550 total shareholders with 1.1 million average trading volume over the past 12 months.
There is no reason for a Reverse Split and if anyone feels that this is not true then please state your case.
Is an internist at MGH who wrote the book on antibiotic therapy in transplantation animals at the MGH Center for Transplantation Medicine. Jay was an advocate of presurgery antibiotic administration for animals and humans. He is the major prescriptive physician for antibiotic use at MGH. His basic prescription is administer cephalosporins two to three days prior to surgery because if a bacteria gets carried into deeper tissues it will most likely be a Staph or a Strep (hence cephalosporins will be protective), but if a post operative infection occurs . . . switch to fluoroquinolones (like Cipro) and use that antibiotic until a specific organism is isolated and tested for antibiotic sensitivity. Then switch to that antibiotic if necessary. With Pulmoquin, the important factor is that Cipro can be used systemically at the same time it is used by inhalation. The bacteria has no place to go (caught between the Cipro in the blood and the Cipro in the biofilm) and gets extinguished rapidly. Cipro is among the safest antibiotics also.
Sentiment: Strong Buy
probably more like 20,000 shares. I would suspect a 1 for 10 reverse. remember that part of the goal is getting listed on a bigger board. however, I don't see them doing a reverse until they can get the price up to .50 to $1. it wouldn't make sense to reverse unless they have the price up and all the paper work in place. Management has stated that they are keeping the best interest in mind for their shareholders. I realize that can mean nothing. but in this case I believe them. but to your point whyaduck if done right the numbers shouldn't make a difference as long as the market cap stays in tact and they don't reverse and then then issue a #$%$ load of stock after the reverse.
Right, my 200,000 might really soon be 40,000 shares or less. That's OK if the price jumps accordingly. I believe ARDM will wait until the market catches on, ala INSM, when ARDM deep into PH III trials.
But what if 600 people bought 1 million shares....sweeeeet!!! lol
Sentiment: Strong Buy
whynotaduck---problem is nearly 600 mm shares outstanding---has to be a reverse split in the future.
RICHMOND, Va. (AP) -- Philip Morris International says it plans to enter the growing electronic cigarette business late next year.
The seller of Marlboro and other cigarette brands overseas also said Wednesday that it also plans to accelerate the launch of its reduced-risk products with pilot testing next year. The first launch of one of its next-generation products, which heats tobacco instead of burning it, is planned for 2015.
Electronic cigarettes are battery-powered devices heat a liquid nicotine solution, creating vapor that users inhale.
The category has grown from thousands of users in 2006 to several million worldwide. Many tobacco companies have entered the market to diversify beyond the declining traditional cigarette business.
Company executives in July had dismissed electronic cigarettes, saying they aren't a product that's very close to a traditional cigarette.
Sentiment: Strong Buy