SAN DIEGO, Feb. 24, 2017 (GLOBE NEWSWIRE) -- TearLab Corporation (NASDAQ: TEAR ) (TSX: TLB ) (the “Company”) today announced that it will effect a 1-for-10 reverse stock split previously approved by the Company's stockholders at a special meeting held on February 23, 2017. The 1-for-10 reverse stock split will be effective as of the close of business on Friday, February 24, 2017, and the Company's common stock will begin trading on a split-adjusted basis on Monday, February 27, 2017 on both the Nasdaq Capital Market (Nasdaq) and the Toronto Stock Exchange (TSX).
The reverse stock split is intended to increase the price per share of the Company's common stock to allow the Company to demonstrate compliance with the $1.00 minimum bid price requirement for continued listing on the Nasdaq. The trading symbol will remain TEAR on the Nasdaq and TLB on the TSX. Proportional adjustments will be made to the conversion and exercise prices of the Company's outstanding warrants, convertible preferred stock and stock options, and to the number of shares issued and issuable under the Company's equity compensation plans. The number of authorized shares of the Company's common stock will be reduced to 9,500,000 shares.
Information for Stockholders
Upon the effectiveness of the reverse stock split, each ten shares of the Company's issued and outstanding common stock will be automatically combined and converted into one issued and outstanding share of common stock, par value $0.001 per share. The Company will not issue any fractional shares in connection with the reverse stock split. Instead, a cash payment will automatically be made in lieu of any fractional shares. The reverse stock split will not modify the rights or preferences of the common stock.
The Company's transfer agent, Computershare Trust Company, N.A. (“Computershare”), will act as its exchange agent for the reverse stock split. Computershare will provide stockholders of record holding certificates representing pre-split shares of the Company's common stock as of the effective date a letter of transmittal providing instructions for the exchange of shares. Registered stockholders holding pre-split shares of the Company's common stock electronically in book-entry form are not required to take any action to receive post-split shares. Stockholders owning shares via a broker or other nominee will have their positions automatically adjusted to reflect the reverse stock split, subject to brokers' particular processes, and will not be required to take any action in connection with the reverse stock split.
For questions about the exchange of pre-split shares, please contact Computershare at (800) 546-5141, within the United States, United States territories and Canada. For assistance outside the United States, United States territories and Canada, please call +1 (781) 575-2765.
Additional information pertaining to the reverse split, including on how to exchange shares, is contained in the Company’s proxy statement filed with the U.S. Securities and Exchange Commission on January 3, 2017.
About TearLab Corporation
TearLab Corporation (www.tearlab.com) develops and markets lab-on-a-chip technologies that enable eye care practitioners to improve standard of care by objectively and quantitatively testing for disease markers in tears at the point-of-care. The TearLab Osmolarity Test, for diagnosing Dry Eye Disease, is the first assay developed for the award-winning TearLab Osmolarity System. TearLab Corporation's common shares trade on the NASDAQ Capital Market under the symbol 'TEAR' and on the Toronto Stock Exchange under the symbol 'TLB'.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, among others, statements concerning whether the reverse stock split will increase the price of our common shares and whether we will be able to maintain our Nasdaq Capital Market Listing. These forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause actual results to be materially different from any future results expressed or implied by the forward-looking statements. Forward-looking statements are based on management’s current, preliminary expectations and are subject to various risks and uncertainties. Many factors, risks and uncertainties may cause our actual results to differ materially from forward-looking statements, including the factors, risks, and uncertainties detailed in our filings with the Securities and Exchange Commission and Canadian securities regulatory authorities, including but not limited to our Annual Report on Form 10-K for the year ended December 31, 2015, filed with the SEC on March 9, 2016, and our Quarterly Report on Form 10-Q for the quarter ended September 30, 2016, filed with the SEC on November 9, 2016. We do not undertake to update any forward-looking statements except as required by law.
Investor Contact: The Ruth Group Lee Roth Tel: 646-536-7012 lroth@theruthgroup.com
