Psychemedics Corp. (PMD), a provider of hair testing for drugs of abuse, announced on Monday that its Board has approved 1-for-5,000 reverse stock split of its shares followed immediately by a 5,000-for-1 forward stock split of its stock with effect from December 3.
The company expects savings of over $845,000 on an annual basis as a result of the proposed deregistration and delisting transaction.
On December 4, the stock will continue to trade on the Nasdaq on a post-forward stock split basis under the existing symbol 'PMD.'
Stockholders who hold fewer than 5,000 shares, immediately prior to the reverse stock split will be paid $2.35 in cash.
Shareholders owning over 5,000 shares will not be entitled to receive any cash for their fractional share interests resulting from the reverse stock split.
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