Peregrine will begin reverse stock split on Monday |
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By Staff and Wire Reports |
Saturday, 17 October 2009 07:46 |
Peregrine's shares will trade under the symbol "PPHM," with the letter "D" added to the end of the trading symbol for 20 days to indicate the reverse stock split has occurred. The symbol will change back to its original symbol "PPHM" on Nov. 16, 2009. "We believe that our continued listing on the NASDAQ Stock Market is essential to our future success, and we expect that this reverse stock split will enable us to regain compliance with the minimum bid price rule, the only deficiency affecting our continued NASDAQ listing," noted Paul Lytle, CFO of Peregrine. "The 1:5 exchange ratio that was approved by the Board of Directors is the result of both our extensive evaluations of the capital structure of peer companies in Phase II and Phase III clinical trials and the expert advice of a number of highly experienced financial advisors. Based on previous meetings with institutional investors, we also expect the new capital structure will allow us to attract a broader range of investors to our company." BiomedReports Contributing Columnist Vinny Cassano's Take: On Monday, PPHM investors will receive one share for every five in their portfolio. The market cap remains the same in a reverse stock split, but because there are a reduced number of shares on the back end of the split, the share price is higher. The value of the shares (as per market cap) remains the same.
Disclosure: Long PPHM Vinny Cassano also authors the popular stock investing website VFC's Stock House. "Featured Content" profiles are meant to provide awareness of these companies to investors in the small-cap and growth equity community and should not in any way come across as a recommendation to buy, sell or hold these securities. BiomedReports is not paid or compensated by newswires to disseminate or report news and developments about publicly traded companies, but may from time to time receive compensation for advertising, data, analytics and investor relation services from various entities and firms. Full disclosures should be read in the 'About Us Section'. Add this page to your favorite Social Bookmarking websites ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() |