Lpath Reveals 1-For-14 Reverse Stock Split

Lpath, Inc. LPTN revealed a 1-for-14 reverse split of its issued and outstanding common stock, effective as of 5:00 p.m. EDT on June 10, 2016. According to the company, commencing at the opening of trading on June 13, 2016, its stock would start trading on a split adjusted basis, and the number of common shares outstanding would be decreased to 2.36 million shares post-split from approximately 33.1 million pre-split.

Lpath said the primary purpose of the reverse split was to maintain its listing on The NASDAQ Capital Market. Its Board engaged a financial advisory firm to explore strategic alternatives, including possible mergers and business combinations, a sale of part or all of Lpath's assets, collaboration and licensing arrangements and/or equity and debt financings.

The company indicated this strategic process was active and ongoing, and included a range of interactions with potential parties. While there was no assurance that a strategic transaction would be completed, it believes that maintaining its listing is important to the potential value of those transactions.

Following the news, the stock traded 10.55 percent down on Thursday.