|1.||improving the perception of our common stock as an investment security;|
|2.||resetting our stock to more normalized trading levels in the face of potentially extended market dislocation;|
|3.||appealing to a broader range of investors to generate greater investor interest; and|
|4.||reducing stockholder transaction costs because investors would pay lower commission to trade a fixed dollar amount of our stock if our stock price were higher.|
Senesco Technologies, Inc. (“Senesco” or the “Company”) (OTCQB: SNTI) provides the following update on Company activities. Financial Update As of December 31 st, 2012, Senesco had cash and cash equivalents of $640,125, which was complemented in January 2013 by the receipt of approximately $2,300,000 in net proceeds from the issuance of common stock and warrants. Since November 2012, the Company’s common stock has been quoted on the OTCQB under the ticker symbol SNTI. During the first two months of 2013, average trading volumes increased significantly to over a million shares on certain days. The Company believes this is linked to the January issuance of registered common stock and the need for certain investors to change how their Company OTCQB-quoted stock is held in their accounts. We recently mailed our proxy statement to stockholders in preparation for the Annual Meeting of Shareholders on March 28 th, 2013. One of the proposals included in the proxy statement would give the Company’s board of directors the option to shrink the number of outstanding shares via a reverse split in any ratio of between 2:1 and 20:1 in order to assist in the Company’s efforts to regain the listing of the Company’s common stock on an NYSE or NASDAQ exchange and assist in the Company’s future fund raising efforts. However the timing and the actual ratio of the reverse split have not yet been set and would be determined based on market conditions. We believe that a well-implemented reverse split could benefit our stockholders by:
Reducing the number of shares outstanding, while maintaining or improving the overall value of our common stock, is designed to help us regain our listing on an NYSE or NASDAQ exchange by meeting the applicable minimum share price listing requirement. In addition, it could allow the stock to be purchased by high-quality funds, many of which have price minimums that currently restrict their ability to invest in our stock. The success of a reverse split depends on several factors including market conditions and the achievement of important milestones. Having secured prior approval is an important step since the success of a reverse split could depend on timely and rapid implementation.