Digirad Corporation Announces Reverse Stock Split
4:01 pm ET May 31, 2019 (Globe Newswire) Print
Digirad Corporation (NASDAQ: DRAD) ("Digirad" or "the Company") today announced a reverse stock split of its outstanding shares of common stock at a ratio of 1-for-10 (the "Reverse Split") and that it had filed a Certificate of Amendment of the Company's Restated Certificate of Incorporation in order to effect the Reverse Split. The Reverse Split will be effective after the market closes on June 4, 2019. Beginning with the opening of trading on Wednesday, June 5, 2019, the Company's common stock will continue to trade on the Nasdaq Global Market ("Nasdaq") under the symbol "DRAD," but will trade on a split-adjusted basis under a new CUSIP number, 253827703. The Certificate of Amendment will also, upon effectiveness on June 4, 2019, reduce the number of authorized shares of common stock under the Company's Restated Certificate of Incorporation to 30 million shares authorized (the "Share Reduction").
The stockholders of the Company approved the Reverse Split and the Share Reduction at the Company's 2019 Annual Meeting of Stockholders held on May 1, 2019. In connection with approving the Reverse Split, the Company's stockholders granted authority to the Board of Directors of Digirad (the "Board") to determine, at its discretion, a ratio within the range of 1-for-5 to 1-for-10, at which to effectuate the Reverse Split. The Reverse Split was approved by the Board on March 8, 2019, and the ratio of 1-for-10 was approved by the Board on May 15, 2019. The Reverse Split is expected to enable the Company to meet the NASDAQ Listing Rule that requires a minimum closing bid price of $1.00 per share of the Company's common stock in order to continue the listing of the common stock on Nasdaq.
