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news.Shareholders at the biotech firm Hemosol have decided to consolidate the company's common shares on the basis of one post consolidation share for four pre-consolidation shares in order to avoid being de-listed from the Nasdaq stock exchange.
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This consolidation is being undertaken to bring the company into compliance with the minimum bid requirements of Nasdaq. Hemosol believes that retaining its Nasdaq listing is of strategic importance, given the company’s large US shareholder base as well as the importance of maintaining ready access to the US capital markets.
Hemosol expects its common shares to begin trading on a consolidated basis in June 2005. There will be a temporary change to Hemosol’s Nasdaq symbol to HMSLD for 20 trading days to reflect the consolidation. No fractional shares will be issued in connection with the consolidation and all fractional entitlements will be cancelled.
The company failed to maintain its minimum bid price last year and was put on notice by the stock exchange. This consolidation will cut the number of common shares from 60 million to 15 million in a bid to increase their value.
Following the announcement, stock in Hemosol closed at 43 cents on Nasdaq.
Hemosol specializes in the development and manufacturing of biologics, particularly blood-related proteins. Hemosol has a broad range of novel therapeutic products in development, including oxygen therapeutics and protein-based therapeutics to treat certain infectious diseases, cancers and anemia.