iCAD Announces One-for-Five Reverse Stock Split
iCAD, Inc. (Nasdaq: ICAD) today announced the effectiveness of a one-for-five reverse stock split of its common stock. The reverse stock split was approved by its shareholders at the Annual Shareholder meeting of the Company held on May 22, 2012. The Company's Board of Directors was authorized to proceed with an amendment to the Company's Certificate of Incorporation to effect a reverse stock split and determine the ratio of the split within a range of not less than 1-for-2 or greater than 1-for-6. The Board of Directors has determined to fix the ratio for the reverse stock split at 1-for-5.
The reverse stock split is intended to increase the per share trading price of the Company's common 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 five common shares issued and outstanding prior to the opening of trading on August 16, 2012 will be consolidated into one issued and outstanding share. No fractional common shares will be issued as a result of the reverse stock split and any fractional shares will be paid in cash to the shareholder in lieu of such fractional share.
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