Pharmos Announces Reverse Split of Common Stock
May 31 2005 - 7:00AM
PR Newswire (US)
Pharmos Announces Reverse Split of Common Stock Numbers of
Authorized and Outstanding Shares Reduced on a 1-for-5 Basis
ISELIN, N.J., May 31 /PRNewswire-FirstCall/ -- Pharmos Corporation
(NASDAQ:PARS) today announced that its Board of Directors has
approved a one-for-five reverse split of its common stock,
effective today, May 31, 2005. Beginning today, the Company's
common stock will trade for twenty trading days under a new ticker
symbol on Nasdaq: PARSD. As a result of the reverse stock split,
every five shares of Pharmos common stock will be combined into one
share of common stock. The Company will round up any fractional
shares created by the reverse stock split to whole shares. The
reverse stock split affects all the Company's common stock, stock
options and warrants outstanding immediately prior to the effective
date of the reverse stock split. The reverse split will reduce the
number of shares of the Company's common stock outstanding from
approximately 95,138,000 shares to approximately 19,028,000 shares.
The number of authorized shares of common stock will be reduced
from 150,000,000 shares to 30,000,000 shares. The Company's common
stock will also trade under a new CUSIP number beginning today as a
result of the reverse split. Shareholders who have existing stock
certificates will receive instruction from the Company's transfer
agent, American Stock Transfer and Trust Company, on how to receive
new stock certificates. Shareholders who have their certificates in
"Street Name" or on deposit at their brokerage firm will need to do
nothing further. "Taking this action realigns the market float and
share price in a way that should be more attractive to both
institutional and individual investors. We are committed to
bringing shareholders value by developing products that are based
on our proprietary platform technology and by expanding our
pipeline with products in clinical development via a business
transaction," said Dr. Gad Riesenfeld, President and COO. Pharmos
discovers and develops novel therapeutics to treat a range of
indications, in particular neurological and inflammation-based
disorders. The Company recently completed a Phase IIa trial for its
neuroprotective drug candidate, dexanabinol, from its tricyclic
dextrocannabinoid platform technology, as a preventive agent
against post-surgical cognitive impairment. Other compounds from
Pharmos' proprietary synthetic cannabinoid library, primarily
CB2-selective receptor agonist compounds, are in pre-clinical
studies targeting pain, multiple sclerosis, rheumatoid arthritis
and other disorders. Clinical development in pain indications is
expected to commence during 2005. Statements made in this press
release related to the business outlook and future financial
performance of the Company, to the prospective market penetration
of its drug products, to the development and commercialization of
the Company's pipeline products and to the Company's expectations
in connection with any future event, condition, performance or
other matter, are forward-looking and are made pursuant to the safe
harbor provisions of the Securities Litigation Reform Act of 1995.
Such statements involve risks and uncertainties which may cause
results to differ materially from those set forth in these
statements. Additional economic, competitive, governmental,
technological, marketing and other factors identified in Pharmos'
filings with the Securities and Exchange Commission could affect
such results. DATASOURCE: Pharmos Corporation CONTACT: Gale Smith
of Pharmos U.S., +1-732-452-9556, or Irit Kopelov of Pharmos
Israel, 011-972-8-940-9679; or Investors: John Quirk,
+1-646-536-7029, or Media: Janine McCargo, +1-646-536-7033, both of
The Ruth Group, Inc. for Pharmos Corporation Web site:
http://www.pharmoscorp.com/
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