Board of Directors of Genta Incorporated Announce Reverse Split of Company’s Common Stock
News source: Business Wire
Genta Incorporated (OTCBB: GNTA.OB) announced today that its Board of Directors has approved a one-for-fifty reverse stock split of Genta’s Common Stock, and that the split will be effective with the open of trading on July 1, 2009. At the Special Meeting of stockholders held on June 26, 2009, Genta’s stockholders approved a proposal authorizing the Board of Directors, in its discretion, to effect a reverse split of Genta’s outstanding common stock at a ratio within a specified range.
In the reverse split, each fifty (50) shares of Genta common stock issued and outstanding will be combined into one (1) share of common stock. Following the reverse split, the total number of shares outstanding will be reduced to approximately 100 million shares. Additionally, the reverse split will affect the conversion ratio for all instruments convertible into shares of Genta common stock including its convertible notes, outstanding warrants and outstanding stock options.
As a result of the reverse stock split, holders of certificates representing shares of “old” Genta Common Stock prior to the effective date have the right to receive, upon surrender of those certificates, “new” shares of Genta Common Stock at the ratio of one share of “new” Common Stock for every fifty shares of “old” Common Stock. No fractional shares will be issued in connection with the reverse stock split. Instead, holders of “old” shares who otherwise would have received fractional shares will receive an amount in cash equal to the value of such fractional shares based on the closing price of Genta’s Common Stock on June 30, 2009.
Existing stockholders holding Genta Common Stock certificates will receive a Letter of Transmittal from the Company’s transfer agent, BNY Mellon Shareowner Services, with specific instructions regarding the exchange of shares. Questions regarding this exchange process can be addressed by contacting BNY Mellon Shareowner Services at 1-800-777-3674 (or 1-201-680-6654 from outside the U.S.).
About Genta
Genta Incorporated is a biopharmaceutical company with a diversified product portfolio that is focused on delivering innovative products for the treatment of patients with cancer. Two major programs anchor the Company’s research platform: DNA/RNA-based Medicines and Small Molecules. Genasense® (oblimersen sodium) Injection is the Company's lead compound from its DNA/RNA Medicines program. The leading drug in Genta’s Small Molecule program is Ganite® (gallium nitrate injection), which the Company is exclusively marketing in the U.S. for treatment of symptomatic patients with cancer related hypercalcemia that is resistant to hydration. The Company has developed G4544, an oral formulation of the active ingredient in Ganite, that has recently entered clinical trials as a potential treatment for diseases associated with accelerated bone loss. The Company is also developing tesetaxel, a novel, orally absorbed, semi-synthetic taxane that is in the same class of drugs as paclitaxel and docetaxel. Ganite and Genasense are available on a “named-patient” basis in countries outside the United States. For more information about Genta, please visit our website at: www.genta.com.
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