The Morrisville, N.C.-based company said stockholders approved the reverse stock split range at a special meeting yesterday and authorized a share reduction by stockholders. The applicable certificate of amendment was filed in Delaware, becoming effective at 5 p.m. yesterday, according to a news release.
In October, the company announced its plans to pursue a reverse stock split that could see it exchange a single share for as many as 40 shares. Companies often use reverse splits to buoy their share prices.
TransEnterix’s common stock began trading on a split-adjusted basis when the markets opened today. Its common stock continues to trade on the NYSE American under “TRXC,” but the company said a new CUSIP number (89366M 300) was assigned following the reverse split.
The company added that no fractional shares are issued in connection with the split, as it will round up any fractional shares resulting from it to the nearest whole share.
TransEnterix’s board’s decision follows a third quarter in which the company reported a net loss of -$97.8 million, or -43¢ per share, on sales of $2.0 million for the three months ended Sept. 30, 2019, a worsening situation compared with the loss of -$20.2 million, or -10¢ per share, on sales of $5.4 million in Q3 2018.
Last month, TransEnterix let go of 39 employees, 18% of its headcount, as the robot-assisted surgery company turns its focus on existing Sehance system customers versus drumming up sales. The week before that, the company announced the promotion of its former chief operating officer and chief technology officer Anthony Fernando to president and CEO, replacing Todd Pope, who stepped down and took a role as a senior advisor to the company.