InspireMD (NYSE:NSPR) said today it is postponing a stockholder meeting in which the company was taking into consideration a reverse stock split.
The Israel-based company had originally planned to meet yesterday, but has moved the date back to Oct. 27 as it considers either a 1-for-10 or 1-for-25 reverse split of its stock.
If approved, the move would put a single share in the hands of shareholders for each 10 or 25 shares they currently own.
“While the board of directors does not have a present intention to effect a reverse stock split, stockholder approval would provide us flexibility to pursue strategic transactions and other opportunities that may arise as a result of the progress we have made the past three quarters. As shareholders ourselves, we believe the removal of the employee stock option plan demonstrates our commitment to shareholders. Similarly, the request for authorization for a reverse split could provide us an additional tool that we would only consider if we deem it to be in the best interests of the shareholders,” CEO James Barry said in an SEC filing.
In May, InspireMD said it inked a German distribution deal with AB medica Deutschland GmbH. Through the deal, AB medica will gain the rights to distribute the company’s CGuard EPS embolic prevention system in the region