In continued preparation for its planned uplisting to the
NASDAQ Capital Market, Stellar Biotechnologies recently announced that it will
proceed with a consolidation of its issued and outstanding shares on the basis
of one post-consolidated common share for every 10 pre-consolidated shares,
pending regulatory approval. The reverse split is intended to fulfill one of
the quantitative requirements for listing on the NASDAQ exchange.
“The reverse stock split is a key step in our growth
strategy,” Frank Oates, president and chief executive officer of Stellar,
stated in a news release. “We believe that the proposed uplisting to the NASDAQ
Capital Market offers a number of advantages including the opportunity to
improve liquidity for our shareholders and to increase Stellar’s visibility in
the broader investment community and with institutional investors.”
Although the reverse stock split was approved by Stellar’s
board of directors on August 26, the company is currently awaiting approval
from the Financial Industry Regulatory Authority and the TSX Venture Exchange
before moving forward. With all required paperwork submitted, Stellar
anticipates that the consolidation could become effective as early as next
week.
If the company is successful in its efforts to uplist to the
NASDAQ Capital Market, it will be in a strong strategic position to continue
building on its recent financial performance. In its fiscal quarter ending June
30, Stellar recorded a 117 percent year-over-year increase in revenues on its
way to achieving a net income of approximately $464,000.
As the leader in the sustainable manufacture of keyhole
limpet hemocyanin (KLH), the company is benefitting from increased market
demand as biotechnology firms continue to expand their pipelines of immunotherapies
based on KLH protein. Following a strategic collaboration with Ostiones
Guerreros SA de CV implemented earlier this year, Stellar has positioned itself
as the only company with a reliable and scalable supply of KLH to meet this
growing demand. As its roster of customers with successful therapeutic
candidates approach FDA approval and commercialization, this advantage should
provide an opportunity for the company to achieve rapid and sustainable market
growth.
Stellar’s proposed move to the NASDAQ exchange is expected
to significantly broaden its investment community, which could prove to be
immensely beneficial as it looks to accelerate the development of its programs
in response to rising market demand.
For more information, visit www.stellarbiotech.com
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