Cancer Genetics Inc. is effecting a 1-for-30 reverse split of its outstanding common stock in order to comply with a Nasdaq listing rule.
The Rutherford, N.J.-based biotechnology company said the split is intended to raise the per share trading price of the company's common stock to satisfy the Nasdaq Capital Market's $1 minimum bid price requirement. The reverse split will reduce the number of the company's issued and outstanding common shares to about 2.1 million from about 63 million.
Cancer Genetics' common stock will continue to be traded on the Nasdaq Capital Market under the CGIX symbol.
The reverse split will also apply to the company's common stock issuable upon exercise of its outstanding warrants and stock options, subject to an adjustment in their exercise prices. The split will also apply to common stock issuable under Cancer Genetics' equity incentive plans.
The split will not work to change any stockholder's percentage interest in the company's equity, except to the extent that it results in some shareholders owning a fractional share. As no fractional shares will be issued in connection with the split, shareholders entitled to receive a fractional share will instead receive a cash payment based on the closing price of Cancer Genetics' common stock on Oct. 24.
Holders of a majority of the company's common shares approved the split on May 31, while Cancer Genetics' board approved the split at a ratio of 1-for-30 on Oct. 18.
Continental Stock Transfer & Trust Co. is acting as the exchange agent and transfer agent for the reverse stock split.
Cancer Genetics provides contract research services primarily focusing on studies to guide drug discovery and development programs in the oncology and immuno-oncology fields.