The board of directors of Otix Global Inc, Salt Lake City, has authorized a reverse stock split at a 1-for-5 ratio of its outstanding common stock. The reverse stock split was approved by stockholders at the company’s annual meeting on May 7, 2009, and is expected to be effective on or about March 29, 2010, according to the company.
"Being the only US publicly traded hearing aid company, there are a number of investors interested in participating in the growth of Otix Global," said Michael Halloran, VP and CFO of Otix Global. "This action preserves the opportunity for a wider number of investors to own Otix stock."
As a result of the reverse stock split, every five shares of the company’s common stock that are issued will be automatically combined into one issued and outstanding share, with a change in the par value of such shares from $0.001 to $0.005 per share. The company’s common stock, which is expected to begin trading on a split-adjusted basis when markets open on March 29, will continue to be traded on the Nasdaq Global Market under the symbol "Otix" on a post-split basis.
As of the effective date, the number of shares of Otix common stock outstanding will be approximately 5,571,761.
The company has retained its transfer agent, American Stock Transfer, to act as exchange agent. American Stock Transfer will manage the exchange of old, prereverse stock split shares for new post-split shares. Stockholders of record as of the effective date will receive a letter of transmittal providing instruction for the exchange of their shares as soon as practicable following the reverse stock split. Stockholders who hold their shares in "street name" will be contacted by their banks or brokers with any instructions.
[Source: Otix Global]