Minimum bid price requirement spurs one-for-four reverse stock split Print E-mail
By M.E.Garza   
Wednesday, 06 July 2011 08:06
penny stocksRosetta Genomics, Ltd. (NASDAQ:ROSG), a leading developer and provider of microRNA-based molecular diagnostic tests, today announced the effectiveness of a one-for-four reverse stock split of its share capital.  The reverse stock split, which was previously approved by the Company's Board of Directors, was approved by its shareholders at the 2011 Annual General Meeting of Shareholders of the Company.
Company officials said that the reverse stock split is intended to increase the per share trading price of the Company's ordinary shares to satisfy the $1.00 minimum bid price requirement for continued listing on the NASDAQ Capital Market.  As a result of the reverse stock split, every four ordinary shares issued and outstanding prior to the opening of trading on July 7, 2011 will be consolidated into one issued and outstanding share, with a change in the nominal par value per share from NIS 0.01 to NIS 0.04.  No fractional ordinary shares will be issued as a result of the reverse stock split and any fractional shares will be rounded up to the nearest whole number.

Trading of the Company's ordinary shares on the NASDAQ Capital Market will continue, on a split-adjusted basis, with the opening of the markets on Thursday, July 7, 2011, under new CUSIP number M82183 118.  The Company's ordinary shares will trade under the symbol "ROSGD" for a period of 20 trading days, to designate that it is trading on a post-reverse split basis.  The ordinary shares will resume trading under the symbol "ROSG" after that 20-day period.  Immediately subsequent to the reverse stock split, there will be approximately 7,556,023 of the Company's ordinary shares issued and 7,507,180 of the Company's ordinary shares outstanding.

The Company has retained its transfer agent, American Stock Transfer & Trust Company, LLC ("AST"), to act as its exchange agent for the reverse split.  AST will provide shareholders of record as of the effective date a letter of transmittal providing instructions for the exchange of their certificates.  Shareholders owning shares via a broker or other nominee will have their positions automatically  adjusted to reflect the reverse stock split, subject to brokers' particular processes, and will not be required to take any action in connection with the reverse stock split.  

For more information regarding the Company's reverse stock split, please refer to the proxy statement filed by the Company with the Securities and Exchange Commission as an exhibit to its Report on Form 6-K on May 31, 2011.



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