Digirad Corp announces 1-for-10 reverse stock split
Digirad announced a reverse stock split of its outstanding shares of common stock at a ratio of 1-for-10 and that it had filed a certificate of amendment of the company's restated certificate of incorporation in order to effect the reverse split. The reverse split will be effective after the market closes on June 4. Beginning with the opening of trading on June 5, the company's common stock will continue to trade on Nasdaq under the same symbol, but will trade on a split-adjusted basis under a new CUSIP number. The certificate of amendment will also, upon effectiveness on June 4, reduce the number of authorized shares of common stock under the company's restated certificate of incorporation to 30M shares authorized. The stockholders of the company approved the reverse split and the share reduction at the company's annual meeting of stockholders held on May 1. In connection with approving the reverse split, the company's stockholders granted authority to the board of Digirad to determine, at its discretion, a ratio within the range of 1-for-5 to 1-for-10, at which to effectuate the reverse split. The reverse split was approved by the board on March 8 and the ratio of 1-for-10 was approved by the board on May 15. The reverse split is expected to enable the company to meet the Nasdaq listing rule that requires a minimum closing bid price of $1.00 per share of the company's common stock in order to continue the listing of the common stock on Nasdaq. As a result of the Reverse Split, every 10 pre-split shares of common stock outstanding will automatically combine into one new share of common stock without any action on the part of the holders and with no change in the par value per share of $0.0001. The Reverse Split will proportionately reduce the number of shares of common stock available for issuance under the Company's equity incentive plans and proportionately reduce the number of shares of common stock issuable upon the exercise of stock options and upon the release of restricted stock units outstanding immediately prior to the effectiveness of the Reverse Split. The Reverse Split reduces the number of shares of the Company's outstanding common stock from approximately 20.3 million pre-Reverse Split shares to approximately 2.0 million post-Reverse Split shares. No fractional shares will be issued as a result of the Reverse Split. Owners of fractional shares outstanding after the Reverse Split will receive one full share of post-Reverse Split shares.