IRVINE, Calif., June 15 /PRNewswire-FirstCall/ -- PRO-DEX, INC. (Nasdaq: PDEX) today announced that its Board of Directors has determined to effect a reverse split of the Company's common stock pursuant to authority previously granted by the Company's shareholders. The reverse split will take effect at the start of NASDAQ trading on Friday, June 18, 2010 on a 1-for-3 split-adjusted basis. Pro-Dex's shares will continue to trade on The NASDAQ Capital Market under the symbol "PDEX," with the fifth character "D" added to the end of the trading symbol for a period of 20 trading days to indicate the reverse stock split has occurred. The Company's symbol will revert back to its original symbol "PDEX" on July 19, 2010. A new CUSIP number will be assigned to Pro-Dex's common stock when the split becomes effective.
Mark Murphy, the Company's President and Chief Executive Officer, commented "We believe that our continued listing on The NASDAQ Stock Market is in the best interests of our shareholders, and we expect that this reverse stock split will enable us to regain compliance with the minimum bid price rule, the only deficiency affecting our continued NASDAQ listing."
The 1-for-3 reverse stock split will automatically convert three current shares of Pro-Dex's common stock into one new share of common stock. The reverse split, which was approved by Pro-Dex's shareholders in December 2009, will reduce the number of shares of outstanding common stock from approximately 9.8 million as of the filing date of the Company's most recent Quarterly Report on Form 10-Q ( April 29, 2010) to approximately 3.6 million. It will also affect all issued and outstanding shares of the Company's common stock and the shares of common stock underlying stock options that are outstanding immediately prior to the effective date of the reverse stock split. Each shareholder's new share count will be rounded up to the nearest whole share if the number of shares is not evenly divisible by the ratio of the reverse split. The reverse stock split will not negatively affect any of the rights that accrue to holders of Pro-Dex common stock and shares of common stock underlying stock options that are outstanding immediately prior to the effective date of the reverse stock split.
Mark Murphy continued, "Although our stock price has risen approximately 75% in the last 12 months, it still does not meet the minimum $1 closing bid-price requirement for continued listing on NASDAQ. Our business has progressed well over this time period and we believe implementing this reverse split will enhance our shareholder value by maintaining the marketplace listing."When the reverse split takes effect, shareholders holding certificated shares or shares through a brokerage account will have their shares automatically adjusted to reflect the reverse stock split on the effective date.