AEZS - Aeterna slips ~10% after announcing date of reverse stock split

• The shares of the commercial-stage biotech Aeterna Zentaris ( NASDAQ: AEZS ) dropped ~10% in the morning hours Tuesday after the company disclosed that its previously announced 1-25 reverse stock split would take effect this week.
• Accordingly, the common shares of Aeterna ( AEZS ) will start trading on a split-adjusted basis on or about the opening of trading on July 21.
• The consolidation is expected to reduce the issued and outstanding common shares to ~4.9M from ~121.4M, Aeterna ( AEZS ) said, adding that the reverse stock split was aimed at meeting the Nasdaq’s minimum bid price requirement.
• However, the company is unlikely to satisfy the listing rule to keep the minimum bid price above US$1.00, for a minimum of at least ten consecutive days before July 25, the current expiration date of its grace period.
• However, a potential notice of delisting during that week will give seven calendar days for Aeterna ( AEZS ) to request a hearing. During that period, the company expects regain compliance by August 03 following the reverse stock split.

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