Tengion’s Board Has Approved A Reverse Stock Split
- Amy Dominello Braun
- Multimedia/Special Sections Editor- The Business Journal
Winston-Salem regenerative medicine firm Tengion Inc. Tengion Inc.Latest from The Business JournalsBodyMedia raises M, takes aim at mobile healthNASDAQ warns Tengion it does not meet standardsOn the eve of Facebook’s IPO, a look at the Triad’s recent IPOsFollow this company has received approval from its board of directors for a reverse stock split in an effort to boost its share price, according to a news release.
Tengion, which is working to commercialize the ground-breaking research of Dr. Anthony Atala of the Wake Forest Institute for Regenerative Medicine, received stockholder approval for the split at a ratio of 1-for-10 shares. The company will begin trading on a split-adjusted basis on June 14.
Tengion had been notified earlier this month by NASDAQ that it is not in compliance with minimum stockholder’s equity standards. The reverse stock split is intended to regain compliance, although the company warned that there are no assurances it will be able to do so. Tengion’s stock was at $0.33 Wednesday.
The reverse split will reduce the number of outstanding shares of the company’s common stock to 2.5 million shares.
Tengion (NASDAQ: TNGN) is working on the development of two product candidates to aid patients with damaged or missing bladders or kidneys. It recently announced successful milestones for each program, but it has said it only has enough cash to continue operations until September. The next few months are considered critical to the company’s future
The company also recently laid off a large portion of its staff and moved its consolidated headquarters in January from Pennsylvania to Winston-Salem in order to conserve money for research and development.