MannKind Corp. plans a reverse stock split to remain listed on the Nasdaq Stock Market, pending shareholder approval.
The Valencia biotech on Wednesday filed a proxy statement with the Securities and Exchange Commission inviting shareholders to a special meeting later this month to vote on the proposal.
The company intends to effect the reverse stock split “at a ratio in the range of 1-for-3 to 1-for-10,” according to the filing.
Reverse splits are typically held to increase a stock price above the Nasdaq’s listing threshold of $1 a share. This is accomplished by reducing the number of shares but increasing the value of the shares proportionately.
MannKind’s stock hasn’t traded above $1 since August. Shares closed Thursday down 12 cents, or 17 percent, to 59 cents on the Nasdaq.
The shareholder meeting will be held Feb. 24 at the company’s headquarters at 25134 Rye Canyon Loop.