Ventripoint said it pulled the trigger on a 1-for-10 reverse stock split, effective today.
The move was approved by shareholders and the board at the company’s last annual general meeting. The company also received approval from the TSX Venture Exchange for the split, the company said.
As a result of the split, every 10 shares of stock in the Seattle-based company will be consolidated into a single share.
The company also announced it installed a VMS heart analysis system in a leading hospital in Shanghai, with a team of cardiologists trained to use the system to study patients as part of a research and evaluation program.
“I am pleased to have an operating VMS in a major cardiovascular hospital in China to allow the senior cardiologists to evaluate our product. VentriSound, our shareholder and partner in China, was instrumental in selecting this prestigious hospital and we look forward to other installations in China, shortly,” CEO Dr. George Adams said in prepared remarks.
Ventripoint said a 2nd VMS machine is being sent to a different hospital in China as it continues to focus on the Chinese market.
In November, Ventripoint said it signed a deal with Chinese firm Shanghai YuTian Medical Investment, also known as Ventrisound, to sell 9.1 million units of stock for 5.5¢ per share, bringing in $500,000 with a possible extra $2.25 million upon reaching certain milestones.
Each unit in the deal consists of 1 common share of Ventripoint and 1 quarter of 1 common share warrant which will entitled the holder to 1 additional common share at 11¢ per common share for 2 years after warrant issuance. The deal is expected to close on November 6.
As part of the deal, a finders fee of 8% of the gross proceeds will be paid to Lishman Global, the company said.
If Ventrisound invests the extra $2.25 million, it will hold more than 10% of the issued and outstanding shares of the company, allowing it to nominate a member to the board, the company said.