With the primary objective of planned up-listing to NASDAQ in the near future, Invivo Therapeutics Holdings Corp (OTCMKTS:NVIV) has decided to announce reverse stock split. As per the reports, Invivo stated recently that its Board of Directors approved the execution of 1 for four reverse stock split of outstanding as well as issued common stock. The move will help the company in up listing in the NASDAQ capital market.
Insights On The Matter:
Invivo hopes that the transaction will be executed soon. The reverse stock split will become effective, and the common stock of the company will commence trading on post-split basis starting April 8, 2015. Even though most of the basic formalities have been fulfilled, but still the commencement of the reverse split and trading depends on the approval of Financial Industry Regulatory Authority.
The senior management of the company is very excited to announce this update. According to Mark Perrin, Chairman and CEO, Invivo Board, it is an important milestone for the company. Getting listed on a national security exchange has been a dream for the company for a very long time, and the current reverse stock split execution is a remarkable step towards realizing that dream.
Once the company gets listed on NASDAQ, it will become very easy to liquidate share capital and attract a wide range of institutional investors. It’s like a corporate evolution for the company; hence, the board members don’t want to leave any stone unturned. There is a long way to go, and changing the capitalization structure will play an important role in that.
At the time of reverse stock split procedure, every four shares of outstanding and issued common shares will be converted into one newly issued common share of the company. It will strengthen the capital structure as well as chances of Invivo to make its way to NASDAQ in the near future.