CompuMed Inc. (OTCMKTS:CMPD) Gives Go-Ahead for Reverse Stock Split
CompuMed Inc. (OTCMKTS:CMPD) that provides diagnostic telemedicine, announced that the 1-for-25 reverse stock split previously green-lighted by the company’s stockholders at the annual meeting of stockholders held on March 15, 2022, has become effective.
Market Stats
On Monday, CMPD stock fell 12% to $0.15 with 218K shares, compared to its average volume of 44K shares. The stock moved within a range of $0.1400 – 0.1795 after opening trading at $0.1660.
CompuMed Announces Approval of Reverse Stock Split
Due to the reverse stock split, the number of shares of company’s outstanding common stock is reduced from 42,291,070 to 1,691,643. Effective as of May 23, 2022, every twenty-five shares of issued and outstanding company common stock are to be automatically combined into one issued and outstanding share of common stock, with no change in par value per share.
No fractional shares are to be issued as a result of the reverse stock split. If any fractional shares would have resulted, it will be settled in cash. The reverse stock split will affect all common shareholders equally. Their percentage interest in the company’s common stock won’t be altered, except to the extent that the reverse stock split results in some shareholders experiencing an adjustment of a fractional share as mentioned above.
A “D” will be placed on the company’s ticker symbol for 20 business days, so the symbol reads CMPDD. Once 20 business days are over, the symbol will then change back to CMPD. The new CUSIP for the common stock is 204914501. Post-split shares will be issued in book-entry form, so the stockholders won’t get physical stock certificates.
Traders Corner
CMPD stock is trading below the 20-Day and 50-Day Moving averages of $0.1958 and 0.2247 respectively. Moreover, the stock is trading below the 200-Day moving average of $0.2870.
