Shareholders for the San Deigo, Calif.-based company approved a proposal last year to effect a 1-for-10 reverse stock split that they believed would help make Tandem’s stock more attractive to institutional investors.
“Our board of directors further believes that an increased stock price may also encourage investor interest and improve the marketability of our common stock to a broader range of investors, and thus improve the liquidity of our shares and lower average transaction costs for our stockholders,” the company wrote.
Earlier this year, Tandem reported that its new, 50,000-square foot manufacturing facility in San Diego is fully operational, doubling the company’s previous manufacturing capacity for insulin pumps and cartridges.
The company’s new plant has two insulin pump production lines, four cartridge manufacturing lines and the room to add two more cartridge lines.
Tandem plans to relocate existing production equipment and personnel at its other San Diego facility to the new location over the course of 30 days.
TNDM shares were trading a $3.05 apiece in pre-market activity today, down -6%.