Nanosphere, Inc. (NASDAQ:NSPH), a company enhancing medicine through targeted molecular diagnostics, announced that a 20-to-1 reverse split of its common stock will be effective at 5:00 p.m.
EDTon April 8, 2015, and commencing at the open of trading on Thursday, April 9, 2015, trading of the common stock will continue on the NASDAQ Capital Market on a reverse stock split-adjusted basis. The reverse stock split was approved by the company's stockholders at the special meeting of stockholders held today. The company's board of directors approved the implementation of a reverse stock split and determined the appropriate reverse stock split ratio to be 20-to-1.
At the effective time of the reverse stock split, every 20 shares of Nanosphere's issued and outstanding common stock will be converted into one newly issued and outstanding share of common stock, without any change in the par value per share.
The reverse stock split will reduce the number of shares of Nanosphere's outstanding common stock from approximately 117.2 million to approximately 5.9 million. Proportional adjustments will be made to Nanosphere's outstanding stock options, outstanding warrants, and equity-compensation plans. The number of authorized shares of the company's common stock will remain unchanged. Once the reverse stock split becomes effective, stockholders holding shares through a brokerage account will have their shares automatically adjusted to reflect the 20:1 reverse stock split. Existing stockholders holding common stock certificates will receive a letter of transmittal from the company's transfer agent, American Stock Transfer & Trust Company, LLC, with specific instructions regarding the exchange of shares. No fractional shares will be issued in connection with the reverse stock split. Any fractional shares resulting from the reverse stock split will be rounded up to the nearest whole share.
The company's common stock will continue to trade on the NASDAQ Capital Market under the symbol "NSPH." A new CUSIP number of 63009F204 has been assigned to the common stock in connection with the reverse stock split.(Original Source)
Shares of Nanosphere opened today at $0.2325 and are currently trading up at $0.2801. NSPH has a 1-year high of $2.28 and a 1-year low of $0.22. The stock's 50-day moving average is $0.27 and it's 200-day moving average is $0.39.
On the ratings front, Nanosphere has been the subject of a number of recent research reports. In a report issued on February 13, Roth Capital analyst Chris Lewis reiterated a Buy rating on NSPH, with a price target of $0.50, which implies an upside of 115.1% from current levels. Separately, on February 12, Piper Jaffray's William Quirk downgraded the stock to Hold and has a price target of $0.30.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Chris Lewis and William Quirk have a total average return of -2.3% and 5.8% respectively. Lewis has a success rate of 45.7% and is ranked #3099 out of 3568 analysts, while Quirk has a success rate of 63.6% and is ranked #1459.
Nanosphere Inc develops, manufactures and markets molecular diagnostics platform, the Verigene System, which enables sensitive genomic and protein testing on a single platform.