RESEARCH TRIANGLE PARK – Medical device firm TransEnterix says it will seek shareholder approval for a reverse stock split that, if successful, would reduce the number of company shares and drive up their value.
“We have proactively initiated this reverse stock split to better position the company for long term success,” said Todd Pope, Chief Executive Officer of TransEnterix, in the announcement made early Wednesday.
“We believe that there are many potential benefits to increasing the price per common share and reducing the overall number of shares outstanding, including making the company’s stock more attractive to investors, reducing the daily volatility of our share price, and positioning the company to pursue capital-raising transactions as part of its evaluation of strategic alternatives available to the company.”
The move comes two weeks after TransEnterix, which focuses on robotic surgery technology, said it would restructure the company and explore the possibility of selling the company.
Robotic surgery firm TransEnterix to explore possible sale, will restructure
TransEnterix (TRXC) shares traded at 30 cents on Tuesday.
The proposal will be submitted to shareholders at a meeting tenttively scheduled for Dec. 18.
“The reverse stock split proposal includes a proposed range between 1-for-10 and 1-for-40 shares of outstanding common stock,” the company said.
“The final ratio will be determined by TransEnterix’s Board of Directors after stockholder approval. In addition, if the reverse stock split selected is in the range of 1-for-20 to 1-for-30, the authorized common stock would be reduced to 500,000,000 shares, and if the range selected is greater than 1-for-30, the authorized common stock would be reduced to 250,000,000 shares.”
