LANNETT ANNOUNCES 1 FOR 4 REVERSE STOCK SPLIT

Rhea-AI Summary

Lannett Company (NYSE: LCI) announced a 1-for-4 reverse stock split effective at 5 p.m. ET on February 6, 2023. Each four shares of common stock will convert into one share. This decision was approved by stockholders during the Annual Meeting on January 25, 2023. After the split, Lannett's common stock will continue trading under the symbol LCI and will be adjusted under a new CUSIP number. Fractional shares will not be issued; instead, stockholders will receive cash payments for them. More details can be found in the definitive proxy statement filed on November 29, 2022.

Positive

• Approval of a reverse stock split may enhance stock price and trading liquidity.
• The split was supported by stockholders, showing confidence in management.

Negative

• Reverse stock splits can indicate underlying financial struggles.
• Potential risks of maintaining NYSE compliance may affect investor confidence.

TREVOSE, Pa., Jan. 25, 2023 /PRNewswire/ -- Lannett Company, Inc. (NYSE: LCI) today announced that its Board of Directors approved a 1-for-4 reverse stock split of its issued and outstanding shares of common stock, effective at 5 p.m. Eastern Time on February 6, 2023. Beginning February 7, 2023, the company's common stock will trade on a split-adjusted basis. The common stock will continue to trade on the New York Stock Exchange (NYSE) under the symbol "LCI," but will trade under the new CUSIP number 516012 200. The reverse stock split was approved by Lannett Company's stockholders at the company's Annual Meeting of Stockholders held on January 25, 2023.

Upon the effectiveness of the reverse stock split, every four shares of the company's issued and outstanding common stock will automatically be converted into one share of common stock. The company's authorized shares of common stock, outstanding warrants, equity-based awards and convertible notes will be proportionately adjusted. No fractional shares will be issued in connection with the reverse stock split. Following the completion of the reverse stock split, Lannett's transfer agent will aggregate all fractional shares that otherwise would have been issued as a result of the reverse stock split and those shares will be sold into the market. Stockholders who would otherwise hold a fractional share of Lannett common stock will receive a cash payment from the proceeds of that sale in lieu of such fractional share.

Additional information about the reverse stock split can be found in Lannett Company's definitive proxy statement filed with the Securities and Exchange Commission (SEC) on November 29, 2022.

About Lannett Company, Inc.:
Lannett Company, founded in 1942, develops, manufactures, packages, markets and distributes generic pharmaceutical products for a wide range of medical indications. For more information, visit the company's website at www.lannett.com.

This news release contains certain statements of a forward-looking nature relating to future events or future business performance. Any such statement, including, but not limited to, the impact of the reverse stock split on the price and trading market for the company's common stock; the company's ability to regain and maintain compliance with the continued listing standards of the NYSE, whether expressed or implied, is subject to market and other conditions, and subject to risks and uncertainties which can cause actual results to differ materially from those currently anticipated due to a number of factors which include, but are not limited to, the recent significant rise in the number of Covid cases in China as well as the risk factors discussed in the Company's Form 10-K and other documents filed with the SEC from time to time, including the prospectus supplement related to the proposed offering to be filed with the SEC. These forward-looking statements represent the Company's judgment as of the date of this news release. The Company disclaims any intent or obligation to update these forward-looking statements.

Contact:
Robert Jaffe
Robert Jaffe Co., LLC
(424) 288-4098

View original content to download multimedia:https://www.prnewswire.com/news-releases/lannett-announces-1-for-4-reverse-stock-split-301730913.html

SOURCE Lannett Company, Inc.

FAQ

What is the effective date of Lannett's reverse stock split?

The reverse stock split is effective on February 6, 2023.

What will happen to fractional shares after Lannett's reverse stock split?

Stockholders will receive cash payments for any fractional shares resulting from the reverse stock split.

How will Lannett's stock trade after the reverse stock split?

Lannett's stock will continue to trade under the symbol LCI but on a split-adjusted basis.

What was the shareholder reaction to Lannett's reverse stock split?

The reverse stock split was approved by stockholders at the Annual Meeting held on January 25, 2023.

Where can I find more information about Lannett's reverse stock split?

More information can be found in Lannett's definitive proxy statement filed with the SEC on November 29, 2022.