A Medical Device Daily

Illumina (San Diego) reported that the proposed amendment to its certificate of incorporation, designed to increase the number of authorized shares of its common stock from 120 million to 320 million, was approved Tuesday at the special meeting of its stockholders. The company said it now has enough authorized shares to effect the 2-for-1 stock split approved by its board on July 20. The board established Sept. 10 as the record date and Sept. 22 as the date on which additional shares will be distributed to stockholders.

Illumina makes life science tools and integrated systems for the analysis of genetic variation and biological function. Using its technologies, the company says it provides products and services that currently serve the sequencing, genotyping, and gene expression markets, and it expects to enter the market for molecular diagnostics.

In other financing activity, Signalife (Los Angeles) said its board has approved a consolidation of its common stock in the form of a reverse stock split which will be effected as of 4:30 p.m. EST on Sept. 19. At that time, all outstanding shares of Signalife common stock will be consolidated into such number of shares as would result in a $45 a share stock price based upon the closing price for the common stock as of the record date.

The reverse stock split will be structured in the form of a mandatory share exchange, meaning that each shareholder will be required to first exchange his or her certificate with the company's stock transfer agent in order to change title incident to any sale or other transaction.

Signalife also reported that its principal shareholder, ARC Finance Group, and certain company directors, have agreed to invest a total of $5 million on the first business day after the full implementation of the reverse stock split with the Delaware Secretary of State. The investors will buy a new series of convertible preferred stock, to be designated series B, and will be entitled to a number of such preferred shares equal to the $5 million divided by the average closing market price for the common shares as of the date of the commitment or investment, whichever is higher. This series of stock will be redeemable in five years, together with interest accrued at LIBOR plus 2%. The investors may, after a one-year holding period, convert their investment in the series B preferred shares, including accrued interest, into common shares at the ten-day average closing market price for the common shares as of the date of the conversion.

Signalife is a life sciences company focused on the monitoring, detection and prevention of disease through continuous biomedical signal monitoring. It uses its signal technology to develop medical devices aimed at simplifying and reducing the costs of cardiovascular disease.