EMERYVILLE, Calif., Aug. 30 /PRNewswire-FirstCall/ -- Bionovo, Inc. (Nasdaq: BNVI, BNVID) announced today that it will effect a 1-for-5 reverse stock split, that will become effective with the opening of trading on August 31, 2010. The primary objective in effecting a reverse stock split at this time is to better enable the company to maintain the listing of its common stock on The NASDAQ Capital Market. The company's common stock will continue trading on The NASDAQ Capital Market and will begin trading on a split-adjusted basis at the opening of trading on Tuesday, August 31, 2010.
At Bionovo's annual general meeting of shareholders held on May 3, 2010, shareholders voted to approve a proposal authorizing the board of directors of the company to effect a reverse split of the company's common stock at a ratio within a range of 1-for-2 and 1-for-5, as determined by the board in its sole discretion. As authorized, the board has elected to effect a reverse split at a ratio of 1-for-5.
"After in-depth consideration of our options and input from advisors and shareholders, the board determined that a reverse split of the company's common stock is in the best interest of shareholders," commented Isaac Cohen, O.M.D., Bionovo's Chairman and Chief Executive Officer. "By effecting a reverse stock split, the company is better positioned to comply with the NASDAQ listing rules. Maintaining our listing on NASDAQ provides the company with greater flexibility to support the development of the company."
Details of the Reverse Split
At the effective time of the reverse stock split, every five (5) shares of Bionovo's pre-split common stock, par value $0.0001 per share, will automatically be consolidated into one (1) post-split share of common stock, par value $0.0001 per share. The Reverse Stock Split will automatically convert all of the company's common stock issued and outstanding, and all unexercised warrants and options. As a result of the reverse split, the number of issued and outstanding common shares of common stock will be approximately 21.8 million, subject to adjustment for fractional shares. The reverse stock split will not affect any shareholder's ownership percentage of Bionovo's common stock, except to the limited extent that the reverse split would result in any fractional shares being rounded up.
It is expected that NASDAQ will append a "D" to the company's ticker symbol to indicate the completion of the reverse split and that after a 20 trading-day period following effectiveness of the reverse split, the ticker symbol will revert to "BNVI". In addition, the common stock will also trade under a new CUSIP number effective August 31, 2010.
Additional information can be found in the company's definitive proxy statement filed with the Securities and Exchange Commission on April 9, 2010.
About Bionovo, Inc.
Bionovo is a pharmaceutical company focused on the discovery and development of safe and effective treatments for women's health and cancer, markets with significant unmet needs and billions in potential annual revenue. The company applies its expertise in the biology of menopause and cancer to design new drugs derived from botanical sources which have novel mechanisms of action. Based on the results of early and mid-stage clinical trials, Bionovo believes they have discovered new classes of drug candidates within their rich pipeline with the potential to be leaders in their markets. Bionovo is headquartered in Emeryville, California and is traded on the NASDAQ Capital Market under the symbol, "BNVI". For more information about Bionovo and its programs, visit http://www.bionovo.com.
Forward Looking Statements
This release contains certain forward-looking statements relating to the business of Bionovo, Inc. that can be identified by the use of forward-looking terminology such as "believes," "expects," or similar expressions. Such forward-looking statements involve known and unknown risks and uncertainties, including uncertainties relating to product development, efficacy and safety, regulatory actions or delays, the ability to obtain or maintain patent or other proprietary intellectual property protection, market acceptance, physician acceptance, third party reimbursement, future capital requirements, competition in general and other factors that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Certain of these risks and uncertainties are or will be described in greater detail in our filings with the Securities and Exchange Commission, which are available at http://www.sec.gov. Bionovo, Inc. is under no obligation (and expressly disclaims any such obligation) to update or alter its forward-looking statements whether as a result of new information, future events or otherwise.
SOURCE Bionovo, Inc.