NEW HAVEN, Conn., Feb. 20 /PRNewswire-FirstCall/ -- VION PHARMACEUTICALS, INC. (Nasdaq: VION) today announced that the Company would implement a one-for-ten reverse split of its common stock, effective at 5:00 p.m. Eastern Time on Wednesday, February 20, 2008.
On a pre-split basis, Vion Pharmaceuticals has 81,017,569 shares outstanding as of February 19, 2008. As a result of the reverse stock split, every 10 shares of Vion Common Stock will be combined into one share of Vion Pharmaceuticals' Common Stock, reducing the total number of outstanding shares to approximately 8.1 million shares.
Shares held electronically through a brokerage will be automatically adjusted for the reverse split. Shareholders of record will receive a letter of transmittal from the Company's stock transfer agent, American Stock Transfer & Trust Company, with instructions about how to exchange their shares. Vion will pay cash in lieu of issuing fractional shares.
When the reverse split becomes effective, Vion Pharmaceuticals' 7.75% Convertible Senior Notes due 2012 (the "Notes") will have a conversion rate of 52.0833 shares of common stock per $1,000 Note. Holders of Vion Pharmaceuticals' warrants will receive a notice detailing post-split warrant shares and exercise prices.
Beginning on February 21, 2008, a "D" will be added to the Vion trading symbol for 20 trading days to designate that shares are trading on a post- split basis. After such time, the symbol will revert to "VION".
Alan Kessman, Chief Executive Officer, said, "This adjustment to our
capital structure is important to implement in order to attempt to restore
compliance with NASDAQ listing requirements, which we believe is in the
best interest of our shareholders." He
|SOURCE Vion Pharmaceuticals, Inc.|
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