Biostar Pharmaceuticals, Inc. (NASDAQ GM: BSPM) ("Biostar" or "the Company"), a PRC-based developer, manufacturer and marketer of pharmaceutical and health supplement products in Chinafor a variety of diseases and conditions, today announced that its Board of Directors unanimously approved a reverse split of its common stock at a ratio of 1-for-3, with anticipated trading on the post-split basis on NASDAQ commencing at the open of the stock market on April 4, 2012.
Accordingly, as of the effective date of the reverse split, each 3 shares of issued and outstanding common stock and equivalents will be converted into 1 share of common stock. In addition, the common stock will trade under a new CUSIP number. The Company's ticker symbol will remain unchanged (although NASDAQ may append a fifth-letter identifier "D" to indicate the completion of the reverse stock split, and after a 20 trading-day period following effectiveness of the reverse split, the ticker symbol will revert to "BSPM"). The reverse stock split will become effective upon the filing of the Company's Articles of Amendment to its Articles of Incorporation with the State of Maryland. As noted above, the foregoing action has been duly approved by unanimous written consent of Biostar's Board of Directors pursuant to the Maryland General Corporation Law, without stockholder approval requirement.
As a result of the reverse stock split, the number of outstanding common shares will be reduced to approximately 9,398,892. Fractional stockholdings will be rounded up to the nearest whole number. The reverse stock split will affect all stockholders uniformly and will not affect any stockholder's ownership percentage of the shares of the Company's common stock. Biostar stockholders should contact their broker or Biostar's transfer agent, Interwest Stock Transfer Company at (801) 272-9294, for instruction relating to the reverse stock split procedures.
The purpose of the reverse stock split is to raise the per share trading price of the Company's common stock to regain compliance with the minimum $1.00continued listing requirement for the listing of its common stock on The NASDAQ Global Market. As previously announced, in order to maintain the Company's listing on Nasdaq, on or before April 23, 2012, the Company's common stock must have a closing bid price of $1.00or more for a minimum of 10 prior consecutive trading days. There can be no assurance that the reverse stock split will have the desired effect of raising the closing bid price of the Company's common stock prior to April 23, 2012, to meet this requirement.
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