Discovery Laboratories Inc. announced late Monday a 1-for-15 reverse stock split effective today, a move designed to boost the Warrington company's share price and thereby maintain its listing on the Nasdaq Capital Market.
Discovery Labs received a Nasdaq warning letter Nov. 30, indicating noncompliance with a rule requiring its stock to close at a minimum $1 a share for 10 business days before Nov. 29.
The company originally received a delisting notice Dec. 2, 2009, based on the closing bid price's not reaching the minimum $1 a share for 30 consecutive trading days. A six-month compliance period was granted for the company to reach the minimum for 10 consecutive business days.
Transferring the stock from the Nasdaq Global Market to the Nasdaq Capital Market listing gave the company until Nov. 29 to comply with the pricing requirement.
Discovery Labs said it hopes continued Nasdaq listing will help it secure financing, especially as it hopes to get U.S. Food and Drug Administration approval for Surfaxin, a drug it has been developing for respiratory distress syndrome in premature infants.
After the reverse split, the shares were priced at $4.26 late this morning. - Roslyn Rudolph