The move is being made to increase per share trading price to satisfy the NASDAQ Capital Market’s $1.00 minimum bid price requirement, NeuroMetrix said..
As a result, every 4 shares of the Waltham, Mass.-based company’s stock will be consolidated into 1 issued and outstanding share, and no fractional shares will be issued.
Shareholders who would be entitled to receive a fractional share will receive a cash payment in lieu thereof, the company said.
Trading will continue on the NASDAQ capital market on a split-adjusted basis, NeuroMetrix said.
American Stock Transfer & Trust Company will act as its exchange agent for the reverse split, and will provide shareholders with instructions for the exchange.
In August, NeuroMetrix released preliminary data from a clinical study of its Quell wearable pain relief device for patients with chronic pain.
The study found that 81% of the patients reported improvements in chronic pain levels and overall health after 60-days of using the device, NeuroMetrix said.