SAN DIEGO, Aug. 1 /PRNewswire/ -- MediciNova, Inc. (the “Company”), a specialty pharmaceutical company that is publicly traded on the Hercules Market of the Osaka Securities Exchange (Code number: 4875), today announced that it has set a record date of August 15, 2006 to seek stockholder approval of a reverse stock split. A meeting to consider and vote upon the reverse stock split will be held on or about October 6, 2006.
MediciNova’s Board of Directors has authorized the Company to seek stockholder approval to authorize an amendment to the Company’s Certificate of Incorporation to effect a one-for-ten reverse stock split of the issued and outstanding shares of the Company’s common stock. If approved by the Company’s stockholders, a reverse stock split would affect all shares of the Company’s common stock, including those shares underlying stock options and warrants, outstanding immediately prior to the effective time of the reverse stock split. The Company intends to file a preliminary proxy statement regarding the reverse stock split proposal with the Securities and Exchange Commission (the “SEC”) and mail a definitive proxy statement regarding this proposal to its stockholders.
“At this time, we are recommending a reverse stock split because we believe our stockholders will benefit from a capital structure and stock price that could qualify the Company to seek listing on the NASDAQ Global Market,” said Yuichi Iwaki, M.D., Ph.D., Chief Executive Officer and Chairman of the Company. “We expect that a listing on the NASDAQ Global Market, in addition to maintaining our listing on the Hercules Market of the Osaka Securities Exchange, may increase both the attractiveness of our shares to potential new investors and the ability of large institutional investors to hold our shares,” added Dr. Iwaki.
A special meeting of the Company’s stockholders will be scheduled to consider the reverse stock split proposal. In connection with the proposed reverse stock split, stockholders of the Company are urged to read the definitive proxy statement when it becomes available because it will contain important information about the Company and the proposed reverse stock split. Stockholders will be able to obtain free copies of the proxy statement and other documents filed by the Company with the SEC at the SEC’s web site at www.sec.gov, or by contacting Shintaro Asako, the Company’s Vice President, Accounting and Administration, at (858) 373-1500.
The Company and its directors may be deemed to be participants in the solicitation of proxies from the Company’s stockholders in connection with the proposed reverse stock split. The Company’s directors may be deemed to have interests in the reverse stock split, including as a result of holding options or shares of the Company’s common stock. Information about the directors of the Company and their ownership of the Company’s common stock will be set forth in the definitive proxy statement.
About MediciNova
MediciNova, Inc. is a publicly traded specialty pharmaceutical company focused on accelerating the global development and commercialization of innovative pharmaceutical products. MediciNova’s pipeline, which includes six compounds in clinical testing, targets a variety of prevalent medical conditions, including asthma, Generalized Anxiety Disorder, multiple sclerosis, interstitial cystitis, status asthmaticus, preterm labor, cancer and urinary incontinence. For more information on MediciNova, Inc., please visit www.medicinova.com.
This press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include statements regarding the market demand for the Company’s stock and potential increases in the Company’s stock price. These statements are based on certain assumptions made by the Company’s management that are believed to be reasonable at the time. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, including results of clinical studies and other risks and uncertainties, including those described in the Company’s filings with the Securities and Exchange Commission. These assumptions, risks and uncertainties could cause the Company’s actual results to differ materially from those implied or expressed by the forward-looking statements.
MediciNova, Inc.
CONTACT: Shintaro Asako of MediciNova, Inc., +1-858-373-1500,asako@medicinova.com
Web site: http://www.medicinova.com/
