SAN DIEGO, April 26 /PRNewswire-FirstCall/ -- ADVENTRX Pharmaceuticals, Inc. (NYSE Amex: ANX) today announced that the Company's previously announced 1-for-25 reverse stock split is now effective, and the Company's common stock will begin trading on a split adjusted basis on the NYSE Amex when the market opens today.
The reverse stock split is intended to satisfy the NYSE Amex's determination, as previously communicated to the Company, that it is appropriate for the Company to effect a reverse stock split to address its low trading price per share and that, if a reverse stock split is not completed within a reasonable amount of time, the NYSE Amex may initiate delisting procedures. The Company also believes that a higher share price could broaden ADVENTRX's appeal to investors, in addition to reducing per share transaction fees and certain administrative costs.
The 1-for-25 reverse split reduces the number of shares of the Company's common stock outstanding from approximately 257 million to approximately 10.3 million. Proportional adjustments have been made to ADVENTRX's outstanding stock options, warrants and other equity awards and to its equity compensation plans. Par value and the number of authorized shares of common stock have not changed. The Company will not issue any fractional shares. Stockholders will receive cash in lieu of fractional shares to which they would otherwise be entitled.
Registered holders of ADVENTRX common stock will receive a letter of transmittal from the Company's transfer agent, American Stock Transfer and Trust Company, with instructions for the exchange of their old stock certificates or the electronic adjustment of their holdings through the direct registration system, as applicable, and payment of cash in lieu of any fractional share. Registered holders may contact American Stock Transfer and Trust Company at (877) 248-6417 with questions regarding the exchange process. Stockholders with shares in brokerage accounts will be contacted by their brokers with instructions.
About ADVENTRX Pharmaceuticals
ADVENTRX Pharmaceuticals is a specialty pharmaceutical company whose product candidates are designed to improve the performance of existing cancer treatments by addressing limitations associated principally with their safety and use. More information can be found on the Company's web site at http://www.adventrx.com/.
Forward Looking Statements
ADVENTRX cautions you that statements included in this press release that are not a description of historical facts are forward-looking statements that involve risks and assumptions that, if they materialize or do not prove to be accurate, could cause ADVENTRX's results to differ materially from historical results or those expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to: the risk of negative market reaction following implementation of the 1-for-25 reverse stock split, resulting in stock price decline; the risk that the NYSE Amex will commence delisting proceedings based on a future low selling price per share; the risk that ADVENTRX will pursue development activities at levels or on timelines, or will incur unexpected expenses, that shortens the period through which it is able to comply with NYSE Amex continued listing requirements related to stockholders' equity; the risk that ADVENTRX will be unable to raise sufficient additional capital to continue to develop, seek regulatory approval of and commercialize its product candidates; the risk of difficulties or delays in manufacturing, obtaining regulatory approval for and marketing ADVENTRX's lead product candidates; ADVENTRX's reliance on the performance of third parties to assist in the conduct of its bioequivalence trials, regulatory submissions, CMC activities and other important aspects of its product candidate development programs, and that such third parties may fail to perform as expected; and other risks and uncertainties more fully described in ADVENTRX's press releases and periodic filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2009. ADVENTRX's public filings with the Securities and Exchange Commission are available at http://www.sec.gov/.
You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date when made. ADVENTRX does not intend to update any forward-looking statement as set forth in this press release to reflect events or circumstances arising after the date on which it was made.
ADVENTRX Pharmaceuticals, Inc.
CONTACT: Brian Culley, Chief Executive Officer of ADVENTRX
Pharmaceuticals, +1-858-552-0866; or Investors, Don Markley of
Lippert/Heilshorn & Associates, Inc., +1-310-691-7100, dmarkley@lhai.com, for
ADVENTRX Pharmaceuticals
Web Site: http://www.adventrx.com/
