Item 5.02 Departure of Directors or Principal Officers; Election of Directors; Appointment of Principal Officers
Timothy McInerney has tendered his resignation from the Company’s Board of Directors effective June 23, 2011.
Item 5.03 Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year.
At the Annual Meeting of Stockholders of Manhattan Pharmaceuticals, Inc. (the “ Company ”) held on May 20, 2011, the Company’s stockholders approved a proposal authorizing the Company’s Board of Directors (the “ Board ”), at its discretion, to amend the Company’s Amended and Restated Certificate of Incorporation, as amended (the “ Certificate of Incorporation ”), to effect a reverse stock split of the Company’s issued and outstanding shares of common stock, par value $0.001 per share, within the range of 1 for 25 and 1 for 50, inclusive, without further approval or authorization of the Company’s stockholders if the Board determines in the future that such a reverse stock split is in the best interests of the stockholders (the “ Reverse Split Amendment Authorization ”). Pursuant to the Reverse Split Amendment Authorization, the Board approved a 1 for 50 reverse stock split.
On June 23, 2011, the Company filed an amendment to its Certificate of Incorporation with the Secretary of State of Delaware (the “ Charter Amendment ”). The Amendment effected a one-for-fifty (1 for 50) reverse stock split of its outstanding common stock, par value $0.001 per share. As a result of the split, each fifty (50) outstanding shares of pre-split common stock were automatically combined into one (1) share of post-split common stock, par value $0.001 per share. Accordingly the Company’s approximately 129.8 million pre-split shares outstanding will be combined into approximately 2.6 million post-split shares outstanding.
The Charter Amendment did not change the par value of the Company’s common stock, which remains at $0.001 per share, or the number of shares of common stock the Company is authorized to issue, which remains at 500,000,000 shares. No fractional shares will be issued. Stockholders, who otherwise would be entitled to receive fractional shares because they hold a number of shares not evenly divisible by 50, will automatically receive one whole share of common stock in lieu of the fractional share. Each stockholder’s percentage ownership interest and proportional voting power remain substantially unchanged, except for minor changes that may result from rounding up for fractional shares. In addition, proportional adjustments will be made for the Company’s equity awards, outstanding warrants and convertible notes.
The Company’s shares will continue trading on the Over-the-Counter Bulletin Board (the “ OTCBB ”) and will begin trading on a post-split basis upon completion of the Financial Industry Regulatory Authority approval process which is currently expected to be on or about July 8, 2011. For a period of 20 trading days thereafter the Company’s ticker symbol will be changed to “MHAND” to signify that the reverse stock split has occurred. After this 20-day trading period the Company’s common stock will resume trading under the symbol MHAN.
The Company’s transfer agent, Continental Stock Transfer and Trust Company, will send instructions to stockholders of record regarding the exchange of outstanding stock certificates for new certificates representing post-split shares of common stock.
Sanofer,
Typically I would agree, but CABN (now CABND) defied logic and R/S expectations and more than doubled right after the reverse split a few weeks ago (closed at twice the R/S today). YRCW tripled last week after everyone wrote it off. Miracles do happen!!!! I have owned a few others that also rallied this year after a R/S, which surprised me. I think the R/S and dilution panic sell off is already priced in here. I have been buying the last 2 weeks at and under .011
As a wise man once said "We will see". You never know, they may be planning a huge promo pump to send it into dollar land next before raising phase III cash?
Right now at .005/share X 129 million shares = 645,000 market cap, which WAY undervalues this company now!!!! And with only 2.58 million shares to trade post R/S, penny stock buyers trying to buy could easily drive the price into dollar land. .04 per share pre split is $2/share post split, and revalues the Market cap at about $5 million dollars. They reported a .03/share profit (pre R/S, which is $1.50/share profit post reverse split) the last quarter!!!!!
An M&A buyout would be at least 20 million I think.
Ecomike is buying here!!!!
Ambition with out knowledge is like ship in dry dock. Going nowhere fast!
