Psychemedics Corp. (PMD), a company specializing in hair drug testing, has announced a strategic stock restructuring. On Monday, the Board approved a reverse stock split at a ratio of 1-for-5,000, which will be immediately followed by a forward stock split of 5,000-for-1, both effective from December 3.
This maneuver is projected to yield annual savings exceeding $845,000, attributed to the deregistration and delisting of shares.
Following these changes, as of December 4, the stock will continue to be listed on Nasdaq, trading under the familiar ticker symbol 'PMD,' but reflecting the adjusted post-forward stock split.
For shareholders possessing fewer than 5,000 shares before the reverse stock split, a cash payment of $2.35 per share will be made. Those holding more than 5,000 shares will not receive cash for any fractional shares resulting from the split.
