Targeted Genetics shareholders authorize reverse stock split

By Lisa Kerner

Erie, Pa., May 9 - Targeted Genetics Corp.'s shareholders and board of directors at the company's annual meeting authorized a reverse stock split at a ratio of one for 10, expected to take place after the close of trading on May 10.

Each 10 shares of Targeted Genetics' issued and outstanding common stock will automatically be combined into and become one share of common stock.

Holders of fractional shares will receive cash in lieu of their fractional shares.

"Our management team and board of directors believe that maintaining our listing on the Nasdaq is in the best interest for the company and our shareholders by providing a broader market for trading our common stock and by increasing our ability to execute strategic or financing transactions," president and chief executive officer H. Stewart Parker said in a company news release.

"We believe that a higher stock price may help to generate greater interest in our securities among investors and analysts, in particular with upcoming data from our inflammatory arthritis program being presented at several scientific venues this year."

After the reverse split, the Targeted Genetics will have about 9.9 million shares outstanding.

The company said it anticipates its common stock to trade on a split-adjusted basis, with the interim ticker symbol "TGEND" when the market opens on May 11.

After 20 trading days, the Targeted Genetics expects that the "D" designation will be removed and its ticker symbol will revert back to "TGEN."

Targeted Genetics said it can regain compliance with the minimum bid price requirement if its common stock closes at or above $1 for 10 consecutive business days following the reverse stock split.

Seattle-based Targeted Genetics develops targeted molecular therapies for the prevention and treatment of inflammatory arthritis, HIV/AIDS and other acquired and inherited diseases.

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