Poniard Pharmaceuticals seeks shareholder approval of reverse stock split

By Angela McDaniels

Seattle, July 27 - Poniard Pharmaceuticals, Inc. will seek approval of a one-for-six reverse stock split from its shareholders at a special meeting on Sept. 22, according to a company news release.

"We are recommending a reverse stock split because we believe that all of our shareholders will benefit from a capital structure more appropriate for a company of our operational and financial status," chairman, president and chief executive officer Jerry McMahon said in the release.

"We view capital restructuring as a logical next step in our corporate transformation and in our efforts to position the company to reflect potential value generated as key milestones are announced over the next 12 months.

"The reverse stock split also may have the benefits of increasing both the marketability of our stock to potential new investors and the ability of large institutional investors to hold our shares."

Poniard's common stock (Nasdaq: PARD), of which there are roughly 136.8 million shares outstanding, closed at $0.64 on Thursday.

The company said it will mail proxy materials to shareholders of record as of Aug. 16 sometime in mid-August.

Poniard, formerly NeoRx Corp., is a specialty pharmaceutical company focused on oncology. It has headquarters in Seattle and plans to move to San Francisco.

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