Genaera Corp. said today its board authorized a one-for-six reverse split of its common stock, effective after the market closes on May 11.
The Plymouth Meeting biopharmacuetical company had 104.7 million shares outstanding as of March 31. After the split, every 6 shares of Genaera common stock will be combined into one share - cutting the total to about 17.4 million.
The reverse split "provides the flexibility we need to meet our ongoing financial needs while restoring compliance with Nasdaq listing requirements," said Jack Armstrong, the company's chief executive.
The company announced a 30 percent cut in jobs in January and a second 30-percent reduction this month. It now has 23 employees.
Genaera focuses on developing drugs for obesity, metabolic diseases and asthma. Its shares were down 10 cents this morning to 50 cents in Nasdaq trading.