Cardica pulls the trigger on 1-10 reverse split

Cardica (NSDQ:CRDC) said it is initiating a 1-for-10 reverse split of its common stock, effective today.

Company stockholders approved a series of alternate amendments to effect a reverse stock split that was approved by the company’s board of directors in late January, according to an SEC filing.

Through the split, every 10 shares of the company’s issued and outstanding common stock will be converted into 1 issued and 1 outstanding share of common stock without change in par value per share, the company said in an SEC filing.

No fractional shares will be issued as a result of the reverse stock split, the company said, and any stockholders who would be entitled to receive fractional shares will receive a cash payment in lieu.

The company’s shares began trading on a split adjusted basis today. Shares dropped 5.3% to $2.52 in trading today, as of 3:59 p.m. EST.

In January, Cardica said it re-upped a licensing deal with Intuitive Surgical (NSDQ:ISRG) to include the evaluation and possible development of a cartridge stapler for Intuitive’s da Vinci robot-assisted surgery platform.

Way back in 2010 the companies signed a deal to integrate Cardica’s micro-cutter technology into the da Vinci system; Intuitive took out a 3% stake in Cardica as part of that agreement.

The new deal calls for Intuitive to pay Cardica another $2 million to license Cardica’s stapling patents until August 2018, including a 6-month feasibility evaluation period for Cardica’s MicroCutter Xchange technology.

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