Generex Needs Shareholder Support For Reverse Stock Split
After facing the threat of being delisted from the Nasdaq, Worcester-based Generex Biotechnology Corp. will hold a very short stockholders' meeting Friday in anticipation of a reverse stock split.
The only business stockholders will be asked to conduct is the adjournment of the meeting to a later date.
Adjournment of the Friday meeting will allow the company more time to gather additional proxies for a reverse stock split proposal that which would cut the number of shares of Generex common stock from 750 million to 500 million, thus increasing its share price.
It will be the company's second attempt at the reverse stock split.
The company was notified in May that its stock had not maintained a minimum bid price of $1 and would be delisted. The company appealed the Nasdaq's decision, and the Nasdaq granted its request to remain listed subject to shareholder approval of a reverse stock split.
Generex tried to implement the reverse stock split at its annual meeting July 28, but the proposal was not approved by shareholders.
The company asked the Nasdaq for more time and was allowed to continue listing on the stock market.
Generex must inform the Nasdaq by Oct. 15 whether it has gained sufficient shareholder votes to carry out the reverse stock split.
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