CEL-SCI Corporation (NYSE MKT:CVM), a late-stage oncology company, announced that it is effecting a 1-for-10 reverse stock split of its common stock which will be effective for trading purposes as of the commencement of trading on September 25, 2013. As of that date, each 10 shares of issued and outstanding common stock and equivalents will be converted into 1 share of common stock. In addition, at the market open on September 25, 2013, the common stock will trade under a new CUSIP number 150837508 although the Company's ticker symbol, CVM, will remain unchanged.
The number of outstanding common shares will be reduced from 310,005,272 to approximately 31 million. The number of authorized shares and the par value per share will remain unchanged. No fractional shares will be issued in connection with the reverse stock split. Any fractional shares resulting from the reverse stock split will be rounded to the nearest whole share. The number of outstanding options and warrants will be adjusted accordingly, with outstanding options being reduced from 52,034,756 to approximately 5.2 million and outstanding warrants being reduced from 99,181,434 to approximately 9.9 million.
It is not necessary for stockholders to exchange their existing stock certificates for new stock certificates in connection with the reverse stock split although stockholders may do so if they wish. Please direct any questions you might have concerning the reverse stock split to your broker or our transfer agent Computershare Trust Company by calling (800) 962-4284.
Geert Kersten, CEO of CEL-SCI stated, "Over the last few months we have had numerous discussions with investors, advisors and our board about our capital structure. In deciding to move forward with the reverse split we looked at many factors. One that swayed us in the end to move forward with the reverse split is that the capital market rules have changed a great deal since the financial crisis and the number of potential purchasers for a sub $1 stock has significantly decreased. We believe the resulting increase in share price will demonstrate the true value of CEL-SCI’s common stock and broaden the appeal of our shares to investors, particularly institutional stockholders."