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June 6, 2013 /PRNewswire/ -- Echo Therapeutics, Inc. (Nasdaq: ECTE), a company developing its needle-free Symphony
® CGM System as a non-invasive, wireless continuous glucose monitoring system, today announced that a 1-for-10 reverse split of the Company's issued and outstanding common stock will be effective prior to the market opening on
Friday, June 7, 2013. Beginning with the opening of trading on
June 7, 2013, the Company's common stock will trade on the NASDAQ Capital Market on a split-adjusted basis. As of that date, the Company's common stock will temporarily trade under the symbol ECTED for 20 business days, at which time the symbol will revert to ECTE.
"After careful analysis, the decision to effect this reverse split was made with the intent of improving the Company's capital structure, increasing our per share market price, and making the Company's stock more attractive to a broader group of investors," stated
Patrick T. Mooney, M.D., Chairman and CEO of Echo Therapeutics. "In addition, this recapitalization should allow us to maintain our Nasdaq listing, which we expect will provide continued liquidity and improved confidence as we continue to advance Symphony towards commercialization."
Each stockholder's percentage ownership interest in the Company and proportional voting power remains unchanged after the reverse stock split. In addition, the rights and privileges of the holders of the Company's common stock are unaffected by the reverse stock split. This reverse stock split will be effected pursuant to an Amendment to the Company's Certificate of Incorporation to be filed with the State of Delaware. As previously disclosed, Echo's stockholders approved a proposal authorizing the Board of Directors, in its discretion, to effect this reverse split of Echo's outstanding common stock at the Annual Meeting of Stockholders held on
May 22, 2013. The Board of Directors has determined to fix the ratio for the reverse stock split at 1-for-10.
At the effective time of the reverse split, every ten shares of the Company's issued and outstanding common stock will automatically be converted into one issued and outstanding share of common stock, without any change in the par value per share. All fractional shares will be rounded up to the next nearest whole share. The number of shares of the Company's common stock issued and outstanding will be reduced from approximately 60.5 million shares pre-split to approximately 6.1 million shares post-split.