Pharsight Announces 1-For-3 Reverse Stock Split
At its annual meeting of stockholders held on August 8, 2007, Pharsightreceived stockholder approval of a proposal authorizing the Pharsight Board ofDirectors, in its discretion, to effect a reverse stock split of Pharsight'scommon stock, at a ratio within the range from one-for-three to one-for-sixshares, at any time prior to the 2008 annual meeting of stockholders.
Today's announcement is consistent with the Company's stated plans to listits common stock on the Nasdaq Capital Market, which has a minimum bid pricerequirement of $4. The reverse split is intended to help meet thisrequirement, and the Company believes it meets all other criteria for listing.Pharsight filed an application to list its common stock on the Nasdaq CapitalMarket on September 18, 2007.
"We have been pursuing an opportunity to list Pharsight's common stock onthe Nasdaq Capital Market by addressing all corporate reporting and listingrequirements, and this reverse stock split should allow us to satisfy thefinal outstanding criteria of minimum bid price," said Shawn O'Connor,president, CEO and chairman of Pharsight. "By obtaining listing status onNasdaq, we believe we can increase the investor audience able to invest in ourcommon stock. We believe that this status coupled with the continuedexecution of our growth strategy may lead to an increase in our valuation, onethat is more in-line with our long-term growth opportunities."
Every three shares of Pharsight common stock will be combined into oneshare of Pharsight common stock. The reverse split will reduce the number ofshares of Pharsight common stock outstanding from approximately 28.2 millionto approximately 9.4 million. The exercise price and the number of shares ofcommon stock issuable under Pharsight's outstanding warrants and options willbe proportionately adjusted to reflect the reverse stock split. Pharsightwill not issue any fractional shares of its new common stock as a result ofthe reverse split. Instead, stockholders will receive a cash payment (basedon the closing sales price of the Company's common stock on the effective dateof the reverse split as reported on the Over-the-Counter Bulletin Board).
Existing stockholders will be sent instructions for exchanging existingstock certificates for new stock certificates, and for receiving cash paymentsfor fractional shares.
About Pharsight Corporation
Pharsight Corporation develops and markets integrated products andservices that enable pharmaceutical and biotechnology companies to achievesignificant and enduring improvements in the development and use oftherapeutic products. Pharsight's goal is to help customers reduce the time,cost and risk of drug development, as well as optimize the post-approvalmarketing and use of pharmaceutical products.
Pharsight's approach enhances the fundamental element of drug developmentsuccess: strong decision-making. By adopting the Pharsight approach, customersacquire a new decision-making process with the potential to systematicallyimprove every level and phase of their business and scientific processes.Pharsight Corporation is headquartered in Mountain View, California.Information about Pharsight is available at http://www.pharsight.com.
This press release includes forward-looking statements, includingstatements regarding listing of Pha
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