Chemex Pharmaceuticals Inc. said Wednesday that its boardhas approved a 1-for-2 reverse stock split to become effectiveon April 15 for stockholders of record as of that date.
The board's action combines a 1-for-4 reverse split previouslyapproved by stockholders with a simultaneous 100 percentcommon stock dividend. After the reverse split, the Fort Lee,N.J., company (NASDAQ:CHMX) will have 8.2 million sharesoutstanding.
The board decided on a 1-for-2 split because the company'ssituation changed, said Len Stigliano, chief financial officer."When the 1-for-4 was in front of shareholders, the stock wasat $1. It's now at $3, so we need to do less to move the priceup."
Shares of Chemex, which is developing drugs to treat skindisorders, closed at $3.25, up 31 cents.
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