Ocata Therapeutics Inc fka OCAT

[rocky301]

"rock, what reasons would the company have for doing a reverse and have they ever done one before? thanks"

ACT asked for and shareholders approved a reverse split in late December of 2007. The catalyst was the upcoming Myoblast Phase 2 trial scheduled to take place around Feb-March of 2008. The Phase 2 never went anywhere coupled with declining share price caused ACT to cancel the reverse split. The same 3 BOD's we have now backed the proposal.

This the range and time frame of proposal:

APPROVAL OF RESTATED CERTIFICATE OF INCORPORATION TO EFFECT REVERSE STOCK SPLIT AT A RATIO WITHIN THE RANGE FROM ONE-FOR-TWO TO ONE-FOR-TEN AT ANY TIME PRIOR TO MAY 1, 2008

(per ACT at the time)
Purpose of the Reverse Stock Split

The purpose of the proposed reverse stock split is to decrease the number of outstanding shares of old common stock in order to increase the market value of each share of the new common stock.

Immediately following a reverse stock split, the per-share price of a company's common stock generally increases proportionately with the reverse stock split ratio. Given the circumstances in which the Company expects to effect the reverse stock split, management believes that the reverse stock split would not only lead to a proportionate increase in the price of the new common stock but would be one in a series of steps that would expand the market for, and increase the price of, the old common stock. Theoretically, decreasing the number of shares of old common stock outstanding should not, by itself, affect the marketability of the shares, the type of investor interested in acquiring them, or the Company's reputation in the financial community. In practice, however, many investors and market makers consider low priced stock as unduly speculative in nature, and, as a matter of policy, avoid investment and trading in such stocks. For instance, institutional investors often have policies limiting their trading in securities to securities that are listed on a national exchange or quoted on a national market and which meet certain price per share criteria. The presence of the foregoing limiting factors may adversely affect not only the pricing of the Company's old common stock but also its trading liquidity and the Company's access to the capital markets. The Company hopes that the decrease in the number of shares of its outstanding common stock resulting from the reverse stock split, and the anticipated increase in the per share trading price, will encourage greater interest in its common stock among members of the financial community and the investing public and possibly create a more liquid market for the Company's stockholders.

One of the primary reasons the Board approved and is recommending the reverse stock split to stockholders is to enable the new common stock to qualify for listing on an exchange or a Nasdaq market. Of the major United States markets, the common stock could most readily qualify for listing on the American Stock Exchange (the "AMEX") and the Nasdaq SmallCap Market (the "SmallCap").
http://www.sec.gov/Archives/edgar/data/1140098/000104746907008940/a2180823zpre14a.htm