Genelabs Implements Previously Announced Reverse Stock Split
December 19 2005 - 8:05AM
PR Newswire (US)
REDWOOD CITY, Calif., Dec. 19 /PRNewswire-FirstCall/ -- Genelabs
Technologies, Inc. (Nasdaq: GNLB; GNLBD) said today that its
previously announced one-for-five reverse split of the company's
common stock has become effective, with post-split trading expected
to begin when the Nasdaq Capital Market opens for trading this
morning. For a period of 20 trading days beginning with the
effectiveness of the reverse split, Genelabs' common stock will
trade on a post-split basis under the trading symbol "GNLBD" as an
interim symbol to denote its new status. After this interim period,
Genelabs' common stock will resume trading under the symbol "GNLB."
The reverse split was approved by the company's shareholders at the
company's annual shareholder meeting on June 14, 2005. Pursuant to
this authorization, on December 5, 2005, Genelabs' board of
directors approved the implementation of the reverse split. The
reverse split is intended to broaden Genelabs' investor base and
help the company regain compliance with Nasdaq's $1.00 minimum bid
price listing requirement by increasing the share price and
decreasing the number of shares, warrants and options outstanding.
Immediately prior to the reverse split, Genelabs had 88,868,865
shares of common stock issued and outstanding. After the
effectiveness of the reverse split, there are approximately
17,773,773 shares of common stock issued and outstanding. About
Genelabs Genelabs Technologies, Inc. is a biopharmaceutical company
focused on the discovery and development of pharmaceutical products
to improve human health. We have built drug discovery capabilities
that can support various research and development projects.
Genelabs is currently concentrating these capabilities on
discovering novel compounds that selectively inhibit replication of
the hepatitis C virus and advancing preclinical development of
compounds from this hepatitis C virus drug discovery program, while
also developing a late-stage product for lupus. We believe that
these high-risk, potentially high reward programs focus our
research and development expertise in areas where we have the
opportunity to generate either first-in-class or best-in-class
products that will address diseases for which current therapies are
inadequate. For more information, please visit
http://www.genelabs.com/. NOTE ON FORWARD LOOKING STATEMENTS AND
RISKS: This press release contains forward-looking statements
including statements regarding the timing of the effectiveness of
the reverse split of Genelabs' common stock and the trading price
of Genelabs common stock after the reverse split is implemented.
These forward-looking statements are based on Genelabs' current
expectations and are subject to uncertainties and risks that could
cause actual results to differ materially from the statements made.
Uncertainties and risks include, without limitation, fluctuations
in Genelabs' stock price; events which reduce Genelabs' future
prospects, problems in initiating manufacturing or IND- enabling
studies; failures or setbacks in our HCV research programs or in
our collaboration with Gilead; progress and announcements by
competitors regarding their HCV programs; regulatory problems or
delays regarding Prestara(TM), including an adverse response from
the FDA or a determination to discontinue development of Prestara;
increases in expenses and Genelabs' capital requirements and
history of operating losses. Please see the information appearing
in Genelabs' filings with the Securities and Exchange Commission,
including our most recent Annual Report on Form 10-K, under the
captions "Risk Factors" and "Forward-Looking Statements" for more
discussion regarding these uncertainties and risks and others
associated with the company's research programs, early stage of
development and other risks which may affect the company or cause
actual results to differ from those included in the forward-
looking statements. Genelabs does not undertake any obligation to
update these forward-looking statements or risks to reflect events
or circumstances after the date of this release. NOTE: Genelabs(R)
and the Genelabs logo are registered trademarks and Prestara(TM) is
a trademark of Genelabs Technologies, Inc. Contact: Matthew M. Loar
Chief Financial Officer 650-562-1424 DATASOURCE: Genelabs
Technologies, Inc. CONTACT: Matthew M. Loar, Chief Financial
Officer of Genelabs, +1-650-562-1424 Web site:
http://www.genelabs.com/
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