Amedica Corporation (NASDAQ:AMDA)
Amedica Corporation (NASDAQ:AMDA) gained over 1.00% after adjourning, for a second time, a special stockholders meeting. The company is seeking to get shareholder approval on a proposed reverse stock-split as it seeks to shore up its share price. Failure to secure enough votes needed left the company with no choice but to adjourn the meeting as it continues to solicit for additional votes.
NASDAQ Delisting Notice
A move to carry out a reverse stock split comes on the heels of Amedica Corporation (NASDAQ:AMDA) shares slumping to all-time lows, having been under immense selling pressure for the better part of the year. The stock is the subject of a delisting notice by the NASDAQ on failing to meet the minimum bid requirement of $1 a share.
Amedica is currently pushing for hearing before the NASDAQ Hearings Panel to discuss the necessary steps it is undertaking to meet the minimum listing requirements for continued listing in the exchange. Pending the hearings determination, the company will continue trading in the exchange.
Reverse Stock Split
The stock is in dire need of new catalysts to bounce back from the current trading levels and regain NASDAQ compliance. The management had proposed a reverse stock-split to help shore up the stock price. The company needs to garner approval of a majority of all outstanding shares if any reverse stock-split is to come into effect.
Amedica Corporation (NASDAQ:AMDA) has since pushed the special stockholder’s meeting to September 21, 2017 as it moves to lobby them on the need to approve the proposed reverse split.
“During the period of the adjournment, Amedica will continue to solicit proxies from its stockholders. Stockholders who have not already done so are encouraged to vote — because passage of the proposal requires a majority of outstanding shares to vote in favor, unvoted shares have the same effect as shares voted against,” Amedica Corporation (NASDAQ:AMDA) in a statement.
Amedica Corporation (NASDAQ:AMDA) is a commercial stage biomaterial company that develops, manufactures and sells a range of medical devices based on a proprietary silicon nitride ceramic technology platform. The company also develops wear and corrosion resistant implant components for hip and knee arthroplasty.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.