MELA Sciences Announces Pending One-for-Ten Reverse Stock Split
MELA Sciences, Inc. (Nasdaq: MELA), developer of the MelaFind® system, an optical diagnostic device approved for use in the U.S. and the European Union to assist dermatologists in melanoma diagnosis, today announced that its board of directors has approved a one-for-ten reverse stock split of the Company's common stock to become effective at 5 p.m., Eastern Time, July 9, 2014. The Company will file an amendment to its Certificate of Incorporation on that date as authorized by the stockholders at the Company's annual meeting held on May 15, 2014. The Company's common stock is expected to commence trading on a post-reverse stock split basis on July 10, 2014. The common stock will continue to trade under the symbol "MELA."
The reverse stock split is intended to increase the per share trading price of the Company's common stock 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 10 shares of the Company's common stock issued and outstanding at the effective time will automatically be combined into one issued and outstanding share without any change in the par value of those shares. In lieu of issuing fractional shares, the Company will round fractions of shares up to the nearest whole share.
The Company expects to have approximately 5.2 million post-split shares outstanding as a result of the reverse stock split. The number of authorized shares of the Company's common stock also will be reduced to 50,000,000 shares as a result of the amendment to the Certificate of Incorporation.
The number of shares of the Company's Series A Convertible Preferred Stock outstanding will not be affected by the reverse stock split. However, the number of shares of common stock into which each outstanding share of Series A Convertible Preferred Stock is convertible will be adjusted proportionately as a result of the reverse stock split. All outstanding options and warrants to purchase shares of the Company's common stock will be adjusted proportionately and the maximum number of shares available for grant under the Company's 2005 Stock Incentive Plan will be adjusted proportionately as a result of the reverse stock split. The maximum number of shares available for grant under the Company's 2013 Stock Incentive Plan will remain the same.
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