The reverse split went into effect today for the Boston-based stent maker, according to a press release. In response, Inspire shares are down 11.8% to $1.45 in mid-day trading.
The split reduced the amount of authorized shares from 125 million to 50 million, the company said.
Last November, InspireMD said it was seeking to raise roughly $8 million via a direct offering to help fund development of its MGuard and CGuard stent platforms.
The company said it agreed to sell approximately 6.2 million shares $1.30 each, plus warrants to purchase up to 3.1 million additional shares. Each purchased share included a warrant to buy 0.5 shares at a strike price of $1.75 apiece. The warrants are exercisable for a 42-month period starting 6 months after issuance.
Last October, InspireMD said it halted enrollment in a clinical trial of its flagship MGuard stent to focus on developing new drug-eluting stents with an unnamed strategic partner, abandoning plans to bring the MGuard device to the U.S. market.
InspireMD last June began re-introducing the MGuard Prime EPS in Europe after pulling it in 2013 and suspending the Master II trial due over the risk of the stent being dislodged during implantation.