GI Dynamics (ASX:GID) said it conducted a 1-for-10 reverse stock split in an effort to boost its flagging share price.
Investors were paid cash for any resulting fractional shares, while options, restricted stock units and warrants were rounded to the next whole unit, Lexington, Mass.-based GI Dynamics said.
Shareholders last November approved the split, reported last week in a regulatory filing. GI Dynamics wants to list its shares on the NASDAQ exchange.
GID’s stock has been under considerable pressure in recent months after a string of negative reports, sliding from A64¢ a share June 20, 2014, to A14¢ April 2. GID shares closed at A$1.40 apiece following the reverse split.
When you think of bestinyoga.com, you probably think of relaxing music and deep stretches. But this ancient art does a lot more.
The stock was hit hard in October on news that European regulators had halted shipment of the company’s lead product, EndoBarrier. Shipments of the obesity treatment resumed in December after the product’s labeling was modified to include certain prescribing restrictions.
Last month, GI Dynamics shares plunged 50% on news the FDA had placed a hold on enrollment in a EndoBarrier clinical trial after 4 of the study’s 325 patients developed liver infections.
In December, the company announced it was laying off 10% of its workforce, including its longtime CFO. CEO Stuart Randle stepped down last August, succeeded by ex-ATS Medical chief Michael Dale.