Durect Corporation (DRRX:NSD) announced on Monday that its board will effect a 1-for-10 reverse Durect stock split on December 5, 2022.
The company’s common stock will trade on a split-adjusted basis beginning on December 6, 2022.
At a special meeting of stockholders held on November 22, 2022, DURECT stockholders approved a proposal authorizing the board of directors to amend the company’s certificate of incorporation to effect a reverse stock split of DURECT’s outstanding common shares at an exchange ratio of not less than 1-for-10 and not more than 1-for-20, and a reduction in the number of authorized shares of common stock from 600 million to 150 million.
The reduction in the number of authorized shares will likewise go into effect on December 5, 2022.
Upon the implementation of the reverse Durect stock split, each ten issued and outstanding shares of the Company’s common stock will be immediately combined and converted into one issued and outstanding share of common stock with a par value of $0.0001 per share.
Following the reverse split, there will be approximately 22,8 million outstanding shares of common stock. The reverse stock split will have no substantial effect on the ownership proportion of any shareholder’s DURECT common shares.
Any fractional share of common Durect stock created as a result of the Reverse Stock Split will be cashed out at a price equal to the product of the Company’s common stock’s closing price on December 5, 2022 and the fractional share’s value.
In addition, modifications will be made to the per-share exercise price and the number of shares that may be issued upon the execution of all outstanding stock options.
The Company’s common Durect stock will continue to trade on The Nasdaq Stock Market LLC (“Nasdaq”) under the symbol “DRRX.” Beginning December 6, 2022, the common shares will trade under a new CUSIP number, 266605 500.
The Company has engaged Computershare as its exchange agent for the Reverse Stock Split. Shareholders holding pre-split shares through a bank, broker, or another nominee will have their positions automatically adjusted to reflect the Reverse Stock Split and will not be required to take any additional action in relation to the Reverse Stock Split, subject to the processes of individual brokers.
Likewise, registered shareholders owning pre-split shares of the Company’s common stock electronically in book-entry form are not needed to take any additional action in relation to the Reverse Durect Stock Split.
The Company or its exchange agent will contact holders of certificated shares with further instructions on how to surrender old certificates.
About Durect Corporation:
DURECT Corporation, a biopharmaceutical company, researches and develops medicines based on its epigenetic regulator and pharmaceutical programs. The company offers ALZET product line that consists of osmotic pumps and accessories used for research in mice, rats, and other laboratory animals.
It also develops larsucosterol (DUR-928), an endogenous, orally bioavailable small molecule that is in Phase IIb clinical trial to play a regulatory role in lipid metabolism, stress and inflammatory responses, and cell death and survival to treat alcohol-associated hepatitis, as well as completed Phase Ib clinical trial to treat patients with nonalcoholic steatohepatitis.
In addition, the company offers POSIMIR, a post-surgical pain product to deliver bupivacaine up to days of in adults; and Methydur to treat attention deficit hyperactivity disorder. It markets and sells its ALZET lines through direct sales force in the United States, as well as through a network of distributors in Japan, Europe, and internationally.
The company has strategic collaboration and other agreements with Virginia Commonwealth University Intellectual Property Foundation; Indivior UK Ltd.; and Santen Pharmaceutical Co., Ltd. DURECT Corporation was incorporated in 1998 and is headquartered in Cupertino, California.