Precipio Takes Final Step towards Regaining Nasdaq Compliance
April 26 2019 - 11:00AM
Specialty cancer diagnostics company Precipio, Inc. (NASDAQ: PRPO)
today announced that it has implemented a 1-for-15 reverse stock
split of outstanding shares of the company's common stock in order
to regain compliance with the Nasdaq minimum bid price requirement
of $1.00. While the company’s share price has recently increased,
it was not sufficient to regain compliance with the Nasdaq
continued listing requirements, and therefore the company decided
to effectuate the reverse split.
What is the economic impact on you, the
shareholder?
A reverse split essentially means a decrease in the number of
shares and a proportional increase in the value of the share price,
and therefore has no impact on the value of stock
held by you as a shareholder. All shareholders also maintain the
same percentage of equity post-split as pre-split.
Shareholders may be concerned about the potential negative
impact to value. It is management’s opinion that ultimately, value
is created through positive results and revenue growth. The company
has recently expanded its product offerings by delivering new
technology to address age-old expensive diagnostic testing
methodologies.
The company’s products and services have global markets and the
market responses are in line with our expectations. As previously
communicated management continues to focus on creating shareholder
value through share price appreciation. We believe this is how we
will continue to deliver positive growth and value to our
investors.
Why did the company choose a 15:1 ratio?
As you may know, many individual investors, and certainly
institutional investors, are prohibited from trading shares of
companies below $2, and some are even prohibited from trading
shares below $5. The new share price post-reverse, should enable
the company to broaden its potential pool of investors to include
both individual, and institutional investors who face such
restrictions.
Furthermore, the company has in the past suffered from
substantial short pressure due to its low share price. With a
larger dollar volume trading, and at a higher share price,
management believes that the short pressure the company’s stock
will face will presumably be substantially reduced. This will also
allow the share price to experience a more organic, market-driven
movement, rather than the fluctuations and volatility experienced
with a lower-priced stock.
“Over the course of the past couple of weeks, we have seen a
recognition of the company’s promise in the form of substantial
share price appreciation. My team and I are neither satisfied nor
content with where we have reached, and we are confident that this
is just the beginning.” said Ilan Danieli, Precipio’s CEO. “I want
to thank the many shareholders who sent in emails showing their
support for the company and their long term commitment. I echo your
sentiment – our team and I believe in the value we are creating
both for patients, and for our shareholders, and we will continue
to build this company. We have an exciting future ahead of us, and
now that we have taken the required steps to address the Nasdaq’s
continued listing requirements, we can focus on continued
growth”
Effective Date of the Reverse Split and additional
information
Shares of the company's common stock are expected to begin
trading on a split-adjusted basis at the open of business on
Monday, April 29, 2019. Trading in the common stock will continue
on the Nasdaq Capital Market under the ticker symbol "PRPO," but
the security will be assigned a new CUSIP number (CUSIP No.
74019L503). Additional information with regard to the reverse split
can be found in the company’s Current Report on Form 8-K, filed on
April 26, 2019.
About Precipio
Precipio has built a platform designed to eradicate the problem
of misdiagnosis by harnessing the intellect, expertise and
technology developed within academic institutions and delivering
quality diagnostic information to physicians and their patients
worldwide. Through its collaborations with world-class academic
institutions specializing in cancer research, diagnostics and
treatment such as the Yale School of Medicine and Harvard’s
Dana-Farber Cancer Institute, Precipio offers a new standard of
diagnostic accuracy enabling the highest level of patient care. For
more information, please visit www.precipiodx.com.
Forward-Looking Statements
Certain statements in this press release constitute
“forward-looking statements,” within the meaning of federal
securities laws including financial projections related thereto and
potential market opportunity, plans and prospects and other
statements containing the words “anticipate,” “intend,” “may,”
“plan,” “predict,” “will,” “would,” “could,” “should,” and similar
expressions, constitute forward-looking statements within the
meaning of The Private Securities Litigation Reform Act of 1995.
The Company's actual results could differ materially from those
anticipated in these forward-looking statements as a result of
various factors. Factors that could cause future results to
materially differ from the recent results or those projected in
forward-looking statements include the known risks, uncertainties
and other factors described in the Company’s prior filings and from
time to time in the Company’s subsequent filings with the
Securities and Exchange Commission. Any change in such factors,
risks and uncertainties may cause the actual results, events and
performance to differ materially from those referred to in such
statements. All information in this press release is as of the date
of the release and the Company does not undertake any duty to
update this information, including any forward-looking statements,
unless required by law.
Inquiries:
investors@precipiodx.com
+1-203-787-7888
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