Cesca Therapeutics Inc., a struggling stem cell medical technology company in Rancho Cordova, said Wednesday that its shareholders approved a reverse stock split designed to raise its share price.
The reverse split, which will take effect Friday afternoon, will give investors one Cesca share for every 20 they own. Cesca has been warned to raise its share price above $1 by March 28 or lose its Nasdaq listing.
The reverse split was announced after the market closed. Cesca closed at 24.56 cents, up 1.46 cents, in Wednesday’s trading.
Cesca has been struggling with a cash shortage and recently accepted a $15 million infusion from a Chinese company, Boyalife Group. Boyalife now owns 20 percent of Cesca and could eventually become majority owner under terms of the deal. Cesca said it needed the infusion to preserve its “financial viability.”
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Cesca develops therapeutic products and storage devices tied to stem cell medicine.