Orthorvita Inc., which makes materials used for bone regeneration and soft tissue healing, is proposing to reduce the number of outstanding shares in order to boost their price.
Shareholders are being asked to approve the move, called a reverse stock split, according to a filing with the Securities and Exchange Commission. The company says its shares, which currently trade less than $3, are priced too low.
"Many institutional investors have policies prohibiting them from holding lower-priced stocks in their own portfolios, which reduces the number of potential buyers of the company's common stock," the Malvern company said. " In addition, analysts at leading brokerage firms may be reluctant to recommend lower-priced stocks to their clients or monitor the activity of lower-priced stocks. " -- Jonathan Berr
