BETHESDA, Md. April 19, 2011 /PRNewswire/ -- Spherix Incorporated (NASDAQ: SPEX), an innovator in biotechnology for therapy in diabetes, metabolic syndrome and atherosclerosis; and providers of technical and regulatory consulting services to food, supplement, biotechnology and pharmaceutical companies, today announced that its Board of Directors, pursuant to previously obtained stockholder authorization, approved a reverse split of its common stock at a ratio of 1 for 10, with a planned effective date of May 6, 2011.
Accordingly, as of the effective date, each 10 shares of issued and outstanding common stock and equivalents will be converted into one share of common stock. The Company's ticker symbol will be appended with a "D" to indicate the completion of the reverse stock split, and after a 20 trading-day period following effectiveness of the reverse split the ticker symbol will revert to "SPEX." In addition, the common shares will also trade under a new CUSIP number. The reverse stock split will become effective upon the filing of a Certificate of Amendment to the Company's Certificate of Incorporation with the Secretary of State of the State of Delaware.
Spherix stockholders will receive instructions from their broker or from Spherix's transfer agent, American Stock Transfer & Trust Company, LLC, containing the appropriate reverse stock split procedures. Fractional stockholdings will be paid out in cash based on Spherix's closing stock price on the effective date. As a result of the reverse stock split, the number of outstanding common shares will be reduced to approximately 2.5 million. The reverse stock split will affect all stockholders uniformly and will not affect any stockholder's ownership percentage of Spherix's common shares (except to the extent that the reverse stock split will result in some of the stockholders receiving cash in lieu of one or more fractional shares). Further information on the logistics regarding the reverse split can be obtained by contacting American Stock Transfer & Trust Company's shareholder services department at 877 248-6417 or 718 921-8317.