PARSIPPANY, N.J., Dec. 28, 2016 /PRNewswire/ -- Interpace
Diagnostics Group, Inc. (the "Company" or "Interpace
Diagnostics") (NASDAQ: IDXG), a company that provides clinically
useful molecular diagnostic tests and pathology services for
evaluating risks of cancer, announced today that as of 5:00 p.m., Eastern Time, on December 28, 2016 it will effect a 1-for-10
reverse stock split of its outstanding common stock, which will be
effective for trading purposes as of the commencement of trading on
Thursday, December 29, 2016.
At the Annual Meeting of Stockholders held on August 3, 2016 the reverse stock split was
approved by the Company's stockholders to be effected at the
Board's discretion within the approved parameters and the specific
ratio was subsequently approved by the Company's Board. The reverse
stock split is intended to increase the per share trading price of
the Company's common stock to satisfy the $1.00 minimum bid price requirement for continued
listing on The NASDAQ Capital Market although the Company
anticipates a NASDAQ hearing and no assurance can be given that
continued listing will occur. Trading of the Company's common stock
on The NASDAQ Capital Market will continue, on a post-split basis,
with the opening of the markets on Thursday,
December 29, 2016, under the existing trading symbol "IDXG"
and under new CUSIP number 46062X 204. The reverse stock
split reduces the number of shares of the Company's common stock
outstanding from approximately 20.2 million shares of common stock
pre-reverse split to approximately 2.0 million shares of common
stock post-reverse split. The number of outstanding options and
warrants will be adjusted accordingly, with outstanding common
stock options and restricted stock units being reduced from
approximately 2.2 million to approximately 218,000 and the number
of warrants being reduced from 1.6 million warrants to 160,000
warrants. The number of authorized shares of common stock and the
par value per share will remain unchanged.
As a result of the reverse stock split, every 10 shares of the
Company's pre-reverse split common stock will be combined and
reclassified into one share of common stock. Proportionate voting
rights and other rights of common stockholders will not be affected
by the reverse stock split. No fractional shares of common stock
will be issued as a result of the reverse stock split and instead
holders will receive a cash payment in lieu of fractional shares to
which they would otherwise be entitled.
After the effective time of the reverse stock split,
stockholders with shares held in certificate form will receive a
Letter of Transmittal and instructions from Interpace Diagnostics'
transfer agent, American Stock Transfer & Trust LLC (AST).
Stockholders that hold shares in book-entry form or hold their
shares in brokerage accounts are not required to take any action
and will see the impact of the reverse stock split reflected in
their accounts. Beneficial holders of Interpace Diagnostics' common
stock are encouraged to contact their bank, broker, custodian or
other nominee with questions regarding procedures for processing
the reverse stock split.
Additional information about the reverse stock split can be
found in the Company's Definitive Proxy Statement filed with the
Securities and Exchange Commission (SEC) on June 22, 2016, and in the Company's Form 8-K
filed with the SEC on December 28,
2016, copies of which is available at www.sec.gov or at the
Company's website at www.interpacediagnostics.com.
"This decision has been made in consultation with advisors and
our Board of Directors and we believe the resulting increase in
share price will broaden the appeal of our shares to investors,
particularly institutional stockholders. Furthermore, the
management and Board of Directors feel strongly that The NASDAQ
Capital Market stock exchange is the most beneficial and
appropriate exchange on which the Company's shares should trade and
this reverse split should assist us in resolving the minimum
trading price issue, allowing us to work to meet the continuing
listing requirements," said Jack E.
Stover, President & CEO of Interpace Diagnostics.
About Interpace Diagnostics Group Inc.
Interpace Diagnostics is a company that provides clinically
useful molecular diagnostic tests and pathology services for
evaluating risk of cancer by leveraging the latest technology in
personalized medicine for better patient diagnosis and management.
The Company currently has three commercialized molecular tests;
PancraGen® for the diagnosis and prognosis of pancreatic
cancer from pancreatic cysts; ThyGenX®, for the
diagnosis of thyroid cancer from thyroid nodules utilizing a next
generation sequencing assay and ThyraMIR®, for the
diagnosis of thyroid cancer from thyroid nodules utilizing a
proprietary gene expression assay. Interpace
Diagnostics' mission is to provide personalized medicine
through molecular diagnostics and innovation to advance patient
care based on rigorous science.
Forward Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, Section
21E of the Securities Exchange Act of 1934 and the Private
Securities Litigation Reform Act of 1995, relating to our future
financial and operating performance. The Company has attempted to
identify forward looking statements by terminology including
"believes," "estimates," "anticipates," "expects," "plans,"
"projects," "intends," "potential," "may," "could," "might,"
"will," "should," "approximately" or other words that convey
uncertainty of future events or outcomes to identify these
forward-looking statements. These statements are based on
current expectations, assumptions and uncertainties involving
judgments about, among other things, future economic, competitive
and market conditions and future business decisions, all of which
are difficult or impossible to predict accurately and many of which
are beyond the Company's control. These statements also involve
known and unknown risks, uncertainties and other factors that may
cause the Company's actual results to be materially different from
those expressed or implied by any forward-looking statement. Known
and unknown risks, uncertainties and other factors include, but are
not limited to, our ability to adequately finance the business, our
ability to restructure our debt and other obligations, our ability
to meet our obligations as they become due, the market's acceptance
of our molecular diagnostic tests; our ability to secure additional
business and generate higher profit margins through sales of our
molecular diagnostic tests, in-licensing or other means,
projections of future revenues, growth, gross profit and
anticipated internal rate of return on investments. Additionally,
all forward-looking statements are subject to the risk factors
detailed from time to time in the Company's periodic filings with
the Securities and Exchange Commission (SEC), including without
limitation, the Annual Report on Form 10-K filed with the SEC on
March 30, 2016 as amended on
April 29, 2016 and June 14, 2016, and the Quarterly Report on Form
10-Q filed with the SEC on November 17,
2016. Because of these and other risks, uncertainties and
assumptions, undue reliance should not be placed on these
forward-looking statements. In addition, these statements speak
only as of the date of this press release and, except as may be
required by law, the Company undertakes no obligation to revise or
update publicly any forward-looking statements for any
reason.
CONTACTS:
Victor Roberts
RedChip Companies
407.644.4256, ext. 111
victor@redchip.com
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SOURCE Interpace Diagnostics Group, Inc.