Oculus Innovative Sciences Announces Reverse Split of Common Stock
22 June 2016 - 7:05PM
Oculus Innovative Sciences, Inc. (NASDAQ: OCLS, warrants OCLSW), a
specialty pharmaceutical company that develops and markets unique
and effective solutions for the treatment of dermatological
conditions and advanced tissue care, announced today that a 1-for-5
reverse split of its common stock will be effective after the close
of business on Friday, June 24, 2016. The reverse stock split was
previously approved by the company’s stockholders at the company’s
special meeting held on June 29, 2015. The company’s board of
directors approved the implementation of a reverse stock split and
determined the appropriate reverse stock split to be a ratio of
1-for-5 on June 2, 2016. The reverse split was not the result
of any NASDAQ actions.
“Two years ago, we set out to change the strategic direction of
our company with a new board of directors, new management team
and new strategic direction focusing on the U.S. dermatology
market with our own direct sales force. Since then, we've
shown measurable progress resulting in growth in U.S. revenue
of 123% for the last twelve months," said Jim Schutz, Oculus
CEO. "Now that we've demonstrated that our restructuring plan
is bearing fruit with strong sales of our seven prescription
products and fast revenue growth, our next steps are to change
the name of the company in the upcoming months to more
accurately reflect our focus on dermatology, and second,
to proactively execute a reverse split to position our stock
price to be attractive to larger investors, closer to the $5
per share investment grade target. We believe that the
combination of a higher stock price and the continued success of
our dermatology strategy with quarterly new product launches and a
growing sales force of over 20 will be attractive to a new level of
investors and help propel Oculus forward."
At the effective time of the reverse stock split, every five
shares of Oculus’ issued and outstanding common stock will be
automatically converted into one newly issued and outstanding share
of common stock, without any change in the par value per
share. All fractional shares will be paid an amount equal to
the product obtained by multiplying (a) the closing price per share
of the common stock as reported on the NASDAQ Capital Market as of
the date of the effective date, by (b) the fraction of one share
owned by stockholder.
The reverse stock split will reduce the number of shares of
Oculus’ common stock outstanding from 21 million to approximately
4.2 million. The number of authorized shares of the company’s
common stock will also be proportionally reduced from 60 million to
12 million. Proportional adjustments will be made to Oculus’ stock
options, warrants and equity-compensation plans. The reverse
stock split will have no effect on the company’s authorized shares
of preferred stock.
The company’s common stock will continue to trade on The NASDAQ
Capital Market under the symbol “OCLS” until such time a corporate
name change is implemented. A new CUSIP number will be assigned to
Oculus’ common stock after the reverse stock split becomes
effective.
The reverse stock split is intended to increase the per share
trading price of the company’s ordinary shares to both satisfy the
$1.00 minimum bid price requirement on The NASDAQ Capital Market
and to encourage the trading of Oculus shares by institutional
funds that typically pass on stocks that are priced less than $5.00
per share.
Once the reverse stock split becomes effective, stockholders
holding shares through a brokerage account will have their shares
automatically adjusted to the reflect the 1-for-5 reverse stock
split. Existing stockholders holding common stock
certificates will receive a letter of transmittal from the
company’s transfer agent, Computershare, Inc. with specific
instructions regarding the exchange of shares.
About Oculus Innovative Sciences, Inc.Oculus
Innovative Sciences is a specialty pharmaceutical company that
develops and markets unique and effective solutions for the
treatment of dermatological conditions and advanced tissue care.
The company’s products, which are sold throughout the United
States and internationally, have improved outcomes for more than
five million patients globally by reducing infections, itch,
pain, scarring and harmful inflammatory responses. The company's
headquarters are in Petaluma, California, with manufacturing
operations in the United States and Latin America. European
marketing and sales are headquartered in Roermond,
Netherlands. More information can be found at
www.oculusis.com
Forward-Looking StatementsExcept for historical
information herein, matters set forth in this press release
are forward-looking within the meaning of the “safe harbor”
provisions of the Private Securities Litigation Reform Act of 1995,
including statements about the commercial and technology progress
and future financial performance of Oculus Innovative
Sciences, Inc. and its subsidiaries (the “Company”). These
forward-looking statements are identified by the use of words such
as “change,” “execute,” and “propel,” among others. Forward-looking
statements in this press release are subject to certain risks and
uncertainties inherent in the Company’s business that could cause
actual results to vary, including such risks
that regulatory clinical and guideline developments may
change, scientific data may not be sufficient to meet
regulatory standards or receipt of required regulatory clearances
or approvals, clinical results may not be replicated in actual
patient settings, protection offered by the
Company’s patents and patent applications may be challenged,
invalidated or circumvented by its competitors, the available
market for the Company’s products will not be as
large as expected, the Company’s common stock and warrants may be
delisted from NASDAQ, the Company’s products will not be
able to penetrate one or more targeted markets, revenues will
not be sufficient to fund further development and clinical studies,
the Company may not meet its future capital needs, the Company
may not be able to obtain additional funding, as well as
uncertainties relative to varying product formulations and a
multitude of diverse regulatory and marketing requirements in
different countries and municipalities, and other risks detailed
from time to time in the Company’s filings with the Securities and
Exchange Commission including its annual report on Form 10-K for
the fiscal year ended March 31, 2016. The Company disclaims
any obligation to update these forward-looking statements, except
as required by law.
Oculus and Microcyn® Technology are trademarks or registered
trademarks of Oculus Innovative Sciences, Inc. All other trademarks
and service marks are the property of their respective owners.
Media and Investor Contact:
Oculus Innovative Sciences, Inc.
Dan McFadden
VP of Public and Investor Relations
(425) 753-2105
dmcfadden@oculusis.com
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