On September 12, 2007, the Company completed a $6.0 million debt and equity bridge financing under its effective shelf registration statement. In the financing, the Company issued $6.0 million in principal amount of 15% senior secured promissory notes due January 15, 2008 and 2,750,000 shares of common stock, which will be subject to certain trading restrictions until January 15, 2008. The Company expects to repay the indebtedness in October 2007 with proceeds from its planned registered public offering.
Reverse Stock Split
On September 12, 2007, the Company received stockholder approval for a reverse split of its outstanding common stock within a range of 1-for-5 to 1-for-7. On September 14, 2007, a committee of the Board approved the implementation of the reverse split at a ratio of 1-for-7. The reverse split will be come effective on Monday, September 17, 2007 and the Company's common stock will begin trading on the NASDAQ Capital Market on a post-split basis that day.
Upon effectiveness of the reverse split, every seven shares of common
stock issued and outstanding will be automatically converted into one new
share of common stock. Fractional shares that result from the split will
not be issued and holders will be paid cash in lieu of fractional shares.
The Company's common stock will trade under the symbol "NTIID" for 20
trading days to denote the reverse split. After that time, the symbol will
revert to "NTII". Holders of record will receive instructions from American
Stock Transfer & Trust Company, the Company's transfer agent, for how to
surrender their pre-spl
|SOURCE Neurobiological Technologies, Inc.|
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