The move will reduce the shares of InspireMD on the market by putting 1 share of common stock in the hands of shareholders for every 25 shares they held previously. No fractional shares will be distributed in the reverse split, the company said.
The reverse split was approved at a special meeting of stockholders held yesterday, Boston-based InspireMD said.
The number of authorized shares of the company’s common stock will remain at 150 million, while the number of outstanding shares will be reduced from approximately 36 million to 1.4 million, according to a press release.
In July, InspireMD said it raised $14.6 million in a “best efforts” stock offering it plans to use to boost sales of its anti-stroke devices.
InspireMD said the offering consisted of 442,424 shares of Series B stock convertible into 100 shares of common stock at 33¢ per share, with a 5-year cumulative dividend rate of 15% a year. The offering also included warrants for more than 44.2 million shares of common stock at an exercise price of 20¢ per share, the company said.