Announces 1-for-6 Reverse Split of Common Stock
2010-06-29 16:01 ET - News Release ST. PAUL, MN -- (MARKET WIRE) -- 06/29/10
EnteroMedics Inc. (NASDAQ: ETRM), the developer of medical devices using neuroblocking technology to treat obesity and other gastrointestinal disorders, today announced that its Board of Directors has approved a 1-for-6 reverse split of its common stock, to be effective upon the close of trading on July 9, 2010. The reverse split is part of the Company's plan to regain compliance with the $1.00 minimum bid price required for continued listing on the NASDAQ Capital Market. The Company's common stock will begin trading on a split adjusted basis on the NASDAQ Capital Market when the market opens on July 12, 2010. Beginning July 12, EnteroMedics' common stock will trade for 20 trading days under ticker symbol "ETRMD" to provide notice of the reverse stock split. After this period, the symbol will revert to "ETRM."
The reverse split will consolidate every six shares of common stock into one share of common stock at a par value of $0.01 per share. The number of authorized common and preferred shares of the Company's stock will not be affected by the reverse split, but proportional adjustments will be made to the Company's outstanding stock options and warrants. Fractional shares of common stock will be rounded up to the nearest whole share and fractional stock options and warrants will be rounded down to the nearest whole share. After the reverse split takes effect, shareholders will receive information from Wells Fargo Bank N.A., the Company's transfer agent, regarding the process for exchanging their shares. As previously disclosed, the Reverse Split was approved by the Company's stockholders at the Annual Meeting of Stockholders held on May 6, 2010.