Psychemedics Corporation Announces Reverse and Forward Stock Split

Core Viewpoint - Psychemedics Corporation has announced a 1-for-5,000 reverse stock split followed by a 5,000-for-1 forward stock split, effective December 3, 2024, to facilitate the proposed delisting from Nasdaq and deregistration under the Securities Exchange Act, aiming to reduce costs and focus on business growth [1][4]. Group 1: Stock Split Details - The reverse stock split will result in stockholders with fewer than 5,000 shares receiving $2.35 in cash for each share, while those with more than 5,000 shares will not receive cash for fractional shares [2]. - The forward stock split will reconvert shares held by continuing stockholders back to the same number of shares they held before the reverse split, ensuring no change in their total shareholding [2]. Group 2: Financial Implications - The company anticipates annual savings exceeding $845,000 from the proposed deregistration and delisting, which will allow for a greater focus on managing business operations and pursuing new initiatives for long-term growth [4]. Group 3: Company Overview - Psychemedics Corporation is recognized as the leading provider of hair testing for drug detection, serving a wide range of clients including Fortune 500 companies, law enforcement, and educational institutions [6].