SAN DIEGO, June 14, 2017 /PRNewswire/ -- Arena
Pharmaceuticals, Inc. (NASDAQ: ARNA), today announced that at the
annual meeting of stockholders, held June
13, 2017, stockholders voted to approve a proposal
authorizing the Board of Directors of the Company to amend the
Company's certificate of incorporation to effect a reverse stock
split of Arena's outstanding common shares at an exchange ratio of
1-for-10, and a change in the number of authorized shares of common
stock to 73.5 million shares. Arena's Board of Directors
had previously directed that the proposal be submitted to the
shareholders for approval and has subsequently determined that the
reverse stock split will take effect at 5:00pm ET on June 16,
2017. Beginning with the opening of trading on June 19, 2017, the Company's common stock will
trade on a split-adjusted basis.
"We started last year with a charter to reset Arena. This
reverse stock split is another step toward driving long-term
shareholder value," stated Amit
Munshi, President and CEO of Arena. "We continue to
look forward to the upcoming ralinepag Phase 2 data readout in
July."
Upon the effectiveness of the reverse stock split, each 10
shares of the Company's issued and outstanding common stock will be
automatically combined and converted into one issued and
outstanding share of common stock, par value $0.0001 per share. As a result of the reverse
split, there will be approximately 31.7 million shares of common
stock issued and outstanding. The common shares will trade under a
new CUSIP number, 040047 607, effective June
19, 2017. All options, warrants, and convertible
securities of the Company outstanding immediately prior to the
reverse stock split will be adjusted.
No fractional shares of common stock will be issued as a result
of the reverse stock split. Stockholders of record who would
otherwise be entitled to receive a fractional share will receive a
cash payment in lieu thereof.
Arena has chosen its transfer agent, Computershare Inc., to act
as exchange agent for the reverse stock split. Stockholders
owning shares via a bank, broker or other nominee will have their
positions automatically adjusted to reflect the reverse stock
split, and will not be required to take further action in
connection with the reverse stock split, subject to brokers'
particular processes. For those stockholders holding
physical stock certificates, Computershare will send instructions
for exchanging those certificates for shares held in book-entry
form representing the post-split number of shares.
Computershare can be reached at (877) 854-4583.
About Arena Pharmaceuticals
At Arena, we are focused on developing novel, small molecule
drugs with optimized receptor pharmacology designed to deliver
broad clinical utility across multiple therapeutic areas. Our
proprietary pipeline includes potentially first- or best-in-class
programs for which we own global commercial rights. Our three
most advanced investigational clinical programs are ralinepag
(APD811) in Phase 2 evaluation for pulmonary arterial hypertension
(PAH), etrasimod (APD334) in Phase 2 evaluation for multiple
autoimmune indications including ulcerative colitis (UC), and
APD371 in Phase 2 evaluation for the treatment of pain
associated with Crohn's disease. In addition, we have
collaborations with the following pharmaceutical companies: Eisai
Co., Ltd. and Eisai Inc. (commercial stage), Axovant
Sciences (Phase 2 candidate), and Boehringer Ingelheim
International GmbH (preclinical candidate).
Forward-Looking Statements
Certain statements in this
press release are forward-looking statements that involve a number
of risks and uncertainties. These statements can be identified by
introductory words such as "expects," "plan," "believes," "will,"
"achieve," "anticipate," "would," "should," "subject to" or words
of similar meaning, and by the fact that they do not relate
strictly to historical or current facts. Such forward-looking
statements include statements regarding driving long-term value;
timing of data readout; Arena's focus, goals, strategy and clinical
programs; and statements regarding the reverse stock split.
For such statements, Arena claims the protection of the Private
Securities Litigation Reform Act of 1995. Actual events or results
may differ materially from Arena's expectations. Factors that could
cause actual results to differ materially from the forward-looking
statements include the timing of regulatory approval; the timing
and outcome of research, development and regulatory review is
uncertain; we expect to need additional funds to advance all of our
programs, and you and others may not agree with the manner we
allocate our resources; our drug candidates may not advance in
development or be approved for marketing; risks related to
developing and commercializing drugs; unexpected or unfavorable new
data; nonclinical and clinical data is voluminous and detailed, and
regulatory agencies may interpret or weigh the importance of data
differently and reach different conclusions than Arena or others,
request additional information, have additional recommendations or
change their guidance or requirements before or after approval;
Arena's and third parties' intellectual property rights; results of
clinical trials and other studies are subject to different
interpretations and may not be predictive of future results;
clinical trials and other studies may not proceed at the time or in
the manner expected or at all; and those factors disclosed in
Arena's filings with the Securities and Exchange Commission. These
forward-looking statements represent Arena's judgment as of the
time of this release. Arena disclaims any intent or obligation to
update these forward-looking statements, other than as may be
required under applicable law.
Corporate Contact
Kevin R. Lind
Chief Financial Officer
klind@arenapharm.com
858.210.3636
Media Contact
Matt Middleman, M.D.
LifeSci Public Relations
matt.middleman@lifescipublicrelations.com
646.627.8384
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SOURCE Arena Pharmaceuticals, Inc.