Shares of Pernix Therapeutics Holdings Inc (NASDAQ:PTX) are down after the specialty pharma company initiated a reverse split of its common stock at a ratio of 1-for-10 before the market open today.
As a result of the reverse stock split, the number of outstanding common shares will be reduced to approximately 9.5 million.
The move was implemented to meet the $1 minimum share price listing standard on the Nasdaq Capital Market. The company’s share price has languished under $1 for nearly six months.
Shares of Pernix Therapeutics reacted to the news, plunging nearly 16% to $0.47 in early trading Thursday.
Majority Voting Standard
The new majority voting standard, which is effective immediately and applies to all future uncontested elections, requires each director nominee to receive a majority of the votes cast to be elected to the Board of Directors. Any incumbent director who does not receive at least a majority of the votes cast in an uncontested election will be required to tender his or her resignation to the Board of Directors. Previously, under a plurality standard, candidates receiving the most votes were elected, regardless of whether those votes constituted a majority. Plurality voting will still apply in contested elections where the number of director nominees exceeds the number of directors to be elected.
“Our Board’s decision to adopt a majority voting standard demonstrates our commitment to a sound governance framework,” said John Sedor, Pernix Therapeutics’ Chairman of the Board and Chief Executive Officer. “At our annual meeting, our stockholders indicated that majority voting was a priority. Over the past several months, we have reviewed our voting standards and concluded that adoption of majority voting is in the best interests of Pernix Therapeutics and its stockholders.” (Original Source)
On the ratings front, Brean Murray Carret analyst Difei Yang downgraded PTX to Hold, in a report issued on August 12. According to TipRanks.com, Yang has a yearly average return of -0.6%, a 40% success rate, and is ranked #3140 out of 4182 analysts.
Pernix Therapeutics Holdings, Inc. engages in the research, development, and manufacture of biopharmaceutical products. It focuses on therapeutics for diseases on central nervous system, neurology, pain, and psychiatry. Its products include treatment of migraine pain and inflammation, insomnia, and depressive disorder. The firm distributes its products under the following brands: Treximet, Silenor, Zohydro ER with BeadTek, and Khedezla.