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.
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.
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.
is anyone else still following this turd? Latest news has BCST breaking it off. ADGL is saying that they owe $100k and 4% equity. would love to understand what the heck is happening. I am actually kind of glad that they are not doing the dilutive merger that was proposed. but if they are going to survive it's going to get diluted any way. man management really screwed this company and it's investors up.
I suspect that it has to do with pricing with Sigma-tau. Makes sense if that is the case. This info. would be too sensitive for competition reasons. Maybe i am wrong. Anyone else with thoughts?
my crystal ball is currently broken but if you have not already download the recent free Aradigm stock write-up report from LifeSci Advisors i recommend that you do. There is some great information in there about the Company, projected sales as well as comparison to the competion. Also some interesting takes on how Lipoquin/Pulmaquin compares to other drugs and what it could potentially do. If you look at our current market cap of $47 million and compare it to say INSM at $580 million. With positive results in phase 3 there is no reason why we won't surpass their market cap. Add in some of the other things ARDM has in the pipeline and an effective sales force you could be talking many multiples of INSM's current valuation. It's a risk but with a high potential pay out.