A Medical Device Daily Staff Report
NeuroMetrix (Waltham, Massachusetts), a science-based healthcare company, said it has set in motion a one-for-six reverse stock split of its common stock. The reverse stock split, which was previously approved by the company's shareholders in May, was approved by the board on Aug. 30.
The reverse stock split is intended to increase the per share trading price of the company's common stock to satisfy the $1 minimum bid price requirement for continued listing on the Nasdaq Capital Market. As a result of the reverse stock split, every six shares of the company's common stock issued and outstanding prior to the opening of trading on Sept. 2, will be consolidated into one issued and outstanding share, with no change in the nominal par value per share of $0.0001. No fractional shares will be issued as a result of the reverse stock split. Shareholders who otherwise would be entitled to receive a fractional share in connection with the reverse stock split will receive a cash payment in lieu thereof.
Trading of NeuroMetrix common stock on the Nasdaq Capital Market continued, on a split-adjusted basis, Friday. Shares of the company's common stock will trade under the symbol "NUROD" for a period of 20 trading days, to designate that it is trading on a post-reverse split basis. The common shares will resume trading under the symbol "NURO" after that 20-day period. Immediately subsequent to the reverse stock split, there will be roughly 3.9 million NeuroMetrix common shares issued and outstanding.
The company's transfer agent, American Stock Transfer & Trust Company, is acting as its exchange agent for the reverse split. The company develops products for the detection, diagnosis, and monitoring of peripheral nerve disorders such as those associated with diabetes and carpal tunnel syndrome.
In other financing activity, HealthSouth (Birmingham, Alabama) said it has completed the retirement of its 10.75% senior notes due in 2016. The call of the remaining roughly $164 million in principal at a price of 105.375% resulted in a cash outlay of about $175 million.
HealthSouth said it expects to report a loss on early extinguishment of debt of roughly $13 million in the third quarter of 2011 and expects interest expense to be about $27 million in the 3Q11 and nearly $24 million in the fourth quarter.