THE WOODLANDS, Texas,
April 29, 2015 /PRNewswire/
-- Lexicon Pharmaceuticals, Inc. (Nasdaq: LXRX) announced
today that it will effect a reverse stock split at a ratio of one
share of newly issued common stock for each seven shares of issued
and outstanding common stock. Lexicon anticipates that the
reverse stock split will be effective at 5:00 p.m. Eastern Time on May 20, 2015, and that its common stock will
commence trading on a split-adjusted basis as of the opening of
trading on May 21,
2015.
Lexicon stockholders previously approved an amendment to
Lexicon's certificate of incorporation to effect the reverse stock
split at the discretion of Lexicon's board of directors. The
amendment was approved by 98.6% of the shares which voted on the
proposal, with 94.8% of the total shares outstanding on the record
date voting.
Upon effectiveness of the reverse stock split, each seven shares
of issued and outstanding common stock will be automatically
converted into one newly issued and outstanding share of common
stock. This will proportionally reduce the total number of
shares outstanding from approximately 725.1 million to
approximately 103.6 million. Proportional adjustments will
also be made to all shares of common stock issuable under Lexicon's
equity incentive plans and upon conversion of Lexicon's 5.25%
Convertible Senior Notes due 2021. Concurrent with the
reverse stock split, the authorized shares of common stock will be
reduced from 900 million to 225 million.
No fractional shares will be issued in connection with the
reverse stock split. Any fractional share of common stock
that would otherwise have resulted from the reverse stock split
will be converted into cash payments equal to such fraction
multiplied by the closing sales price of the common stock as
reported on the Nasdaq Global Select Market on the last trading day
immediately preceding the effective date of the reverse stock
split.
Lexicon has chosen its transfer agent, Computershare Inc., to
act as exchange agent for the reverse stock split.
Stockholders holding their shares in book-entry form or through a
bank, broker or other nominee do not need to take any action in
connection with the reverse stock split, and will see the impact of
the reverse stock split automatically reflected in their accounts
following the effective date. For those stockholders holding
physical stock certificates, Computershare will send instructions
for exchanging those certificates for shares held in book-entry
form or for new certificates, in either case representing the
post-split number of shares. Computershare can be reached at
(877) 854-4583.
Lexicon's trading symbol of "LXRX" will not change as a result
of the reverse stock split, although it is expected that Nasdaq
will append a "D" to Lexicon's ticker symbol for approximately 20
trading days following the effective date to indicate the
completion of the reverse stock split.
About Lexicon
Lexicon is a biopharmaceutical company
focused on developing breakthrough treatments for human
disease. Lexicon has clinical-stage drug programs for
diabetes, carcinoid syndrome, and other indications, all of which
were discovered by Lexicon's research team. Lexicon has used
its proprietary gene knockout technology to identify more than 100
promising drug targets. For additional information about
Lexicon and its programs, please visit www.lexpharma.com.
Safe Harbor Statement
This press release contains
"forward-looking statements," including statements relating to
Lexicon's growth and future operating results, discovery and
development of products, strategic alliances and intellectual
property, as well as other matters that are not historical facts or
information. All forward-looking statements are based on
management's current assumptions and expectations and involve
risks, uncertainties and other important factors, specifically
including those relating to Lexicon's ability to meet its capital
requirements, successfully conduct preclinical and clinical
development of its drug candidates, obtain necessary regulatory
approvals, achieve its operational objectives, obtain patent
protection for its discoveries and establish strategic alliances,
as well as additional factors relating to manufacturing,
intellectual property rights, and the therapeutic or commercial
value of its drug candidates, that may cause Lexicon's actual
results to be materially different from any future results
expressed or implied by such forward-looking statements.
Information identifying such important factors is contained under
"Risk Factors" in Lexicon's annual report on Form 10-K for the year
ended December 31, 2014, as filed
with the Securities and Exchange Commission. Lexicon
undertakes no obligation to update or revise any such
forward-looking statements, whether as a result of new information,
future events or otherwise.
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SOURCE Lexicon Pharmaceuticals, Inc.