Galena Biopharma, Inc. (GALE: Quote) Monday said that its Board of Directors has declared a conditional spin-off stock dividend on Galena common stock of one share of common stock of RXi Pharmaceuticals Corporation, a subsidiary of Galena, for each outstanding share of Galena common stock.
The dividend will be payable, subject to certain conditions, to Galena stockholders as of close of business (Eastern time) on March 8, 2012, the record date for the distribution, in the ratio of one RXi share for each share of Galena common stock held as of the the record date.
The Galena Board of Directors has not set a payment date for the distribution, but Galena anticipates that the payment date for the distribution of the shares will occur as soon as possible, and no later than 60 days, following the record date.
The establishment of a payment date for the distribution is dependent upon the timing of the effectiveness of an application filed with the Financial Industry Regulatory Authority, to permit RXi common stock to be traded in the OTC Markets Group under the symbol "RXII."
The payment of the distribution also will be conditioned upon the closing of the investment in RXi under the securities purchase agreement, dated September 24, 2011, among Galena, RXi and investors in RXi previously announced by Galena.
The announcement of the conditional spin-off stock dividend was as required by NASDAQ Listing Rule 5250(e)(6).
GALE is currently trading at $1.18, up $0.11 or 10.28%, on the Nasdaq. Over the past year, the stock traded in a range of $0.36 - $1.78.
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by RTT Staff Writer
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