InVivo Therapeutics (NSDQ:NVIV) said today it is initiating a 1-for-25 reverse split of its stock, looking to put a single share in the hands of its shareholders for every 25 shares they previously owned.
The move will reduce the company’s authorized shares from 100 million to just four million, the Cambridge, Mass.-based company said, and is slated to take effect after markets close on April 16. The company’s issued and outstanding shares will be reduced from approximately 38.1 million to approximately 1.5 million, it added.
“InVivo remains committed to executing on its near-term goals while building momentum to create shareholder value. Cost-saving initiatives, including the proposed assignment of our lease, will allow us to continue to chart our new path forward. In light of this strategy and after careful consideration, we further determined that a reverse stock split will best allow us to achieve future financing goals on favorable terms for the company and its shareholders. We have received the support of our Board of Directors in taking these actions, and we look forward to providing further updates as we explore financing options,” prez & CEO Dr. Richard Toselli said in a press release.
InVivo also announced it is finalizing a lease assignment and expects to save approximately $3 million through through 2019, alongside other cost savings that it claims will reduce cash burn by $500,000 per month for the last three quarters of 2018.