Commercial-stage medical robotics company Myomo (NYSE:MYO) shares plummeted today after it announced the decision of its board of directors to effect a reverse stock split of the company’s common stock at a 1-for-30 ratio.
Shares of MYO were down nearly –4% to $8.70 per share at market close today.
The decision followed approval of a reverse stock split range and authorized share reduction by stockholders at a special meeting of the stockholders today. The split is set to become effective at 5 p.m. Eastern time today.
Cambridge, Mass.–based Myomo’s common stock is slated to begin trading on a split-adjusted basis when the markets open tomorrow, and it will continue to trade on the NYSE American market under the “MYO” ticker, despite garnering a new CUSIP number (62857J 201) as a result of the split.
The company said in a news release that no fractional shares will be issued in connection with the reverse stock split, and it will round down any fractional shares resulting from it to the nearest whole share.
Myomo develops wearable medical robotic products designed to offer expanded mobility for people suffering from neurological disorders and upper limb paralysis. The MyoPro product line is billed as a powered upper limb orthosis designed to support the arm and restore function in weakened or paralyzed arms of patients suffering from CVA stroke, brachial plexus injury, traumatic brain or spinal cord injury, ALS or other neuromuscular injury or disease.