FRANKLIN, Mass., July 27 /PRNewswire-FirstCall/ -- Sontra Medical
Corporation (Nasdaq: SONT) today announced that its Board of Directors has
authorized a 1-for-10 reverse split of its issued and outstanding common
stock, which was approved by the Company's shareholders at the Annual
Meeting of Shareholders on May 23, 2006. The Board of Directors approved
the reverse stock split to help the Company regain compliance with the
Nasdaq Capital Market's $1 minimum bid price continued listing requirement.
The reverse stock split will be effective on August 11, 2006, when the
Company's common stock will begin trading at the split-adjusted level. For
a period of 20-trading days, the Company's common stock will trade on a
post-split basis under the trading symbol "SONTD". After this 20-trading
day period, the Company's common stock will resume trading under the symbol
"SONT".
As a result of the reverse stock split, each ten shares of common stock
will be combined and reclassified into one share of common stock and the
total number of shares outstanding will be reduced from approximately
27,207,995 shares to approximately 2,720,799 shares. No fractional shares
will be issued in connection with the reverse stock split. Shareholders who
would be entitled to fractional shares will receive cash in lieu of
fractional shares. The exercise or conversion price, as well as the number
of shares that can be issued, under the Company's outstanding stock
options, warrants and Series A Preferred Stock, will be proportionately
adjusted to reflect the reverse stock split. The number of shares reserved
for issuance under the Company's equity compensation plans will also be
reduced proportionately.
"The reverse stock split is in the best interests of the Company and
its shareholders," said Thomas W. Davison, PhD, Sontra's President and CEO.
"We are confident that this action is in the best interests of our
shareholders, continues our appeal to a broad range of investors, and puts
our company in an advantageous position to consider future financing
opportunities."
About Sontra Medical Corporation (http://www.sontra.com)
Sontra Medical Corporation is a technology leader in transdermal
science. Sontra's SonoPrep ultrasound-mediated skin permeation technology
combined with technical competencies in transdermal drug formulation,
delivery systems and biosensors is creating a new paradigm in transdermal
drug delivery and diagnosis. The SonoPrep technology is being developed for
several billion dollar market opportunities, including continuous glucose
monitoring and the transdermal delivery of large molecule drugs and
vaccines. Sontra is currently marketing the SonoPrep device and procedure
tray for use with topical lidocaine to achieve rapid (within five minutes)
skin anesthesia.
This press release contains forward-looking statements, which address a
variety of subjects including, for example, the expected technological
advances and availability of the second-generation SonoPrep device, the
expected benefits and efficacy of the SonoPrep device in connection with
diagnostics, vaccine delivery, glucose monitoring and transdermal drug
delivery, Sontra's expected ability to develop, market and sell products
based on its technology, including a continuous transdermal glucose monitor
for the hospital ICU market; the expected market opportunities,
distribution and market acceptance of the SonoPrep device and technology,
the expected size of the market for the continuous transdermal glucose
monitor for the hospital ICU; and Sontra's business, research, product
development, regulatory approval, marketing and distribution plans and
strategies. Statements that are not historical facts, including statements
about our beliefs and expectations, are forward-looking statements. Such
statements are based on our current expectations and are subject to a
number of factors and uncertainties, which could cause actual results to
differ materially from those described in the forward-looking statements.
The following important factors and uncertainties, among others, could
cause actual results to differ materially from those described in these
forward-looking statements: our technology is new and we may experience
adverse results in research and development efforts, product development,
clinical trials, product evaluations, commercialization efforts, product
distribution and market acceptance; markets for our products may develop
slower than expected, or not at all; our sales cycle is lengthy and we are
still developing sales and marketing strategies which may or may not prove
effective; the SonoPrep device may not prove effective in connection with
diagnostics, vaccine delivery, glucose monitoring and/or transdermal drug
delivery; we may experience difficulties or delays in obtaining regulatory
approvals to market products resulting from development efforts or
difficulties or delays associated with sources of regulatory-approved
transdermal drugs and vaccines; failure to obtain and maintain patent
protection for discoveries or commercial limitations imposed by patents
owned or controlled by third parties would have an adverse effect on us; we
depend upon strategic partners and third-party distributors to develop,
commercialize, market and sell products based on our work; and we require
substantial additional funding to conduct research and development and to
expand commercialization, distribution and marketing activities. For
detailed information about factors that could cause actual results to
differ materially from those described in the forward-looking statements,
please refer to Sontra's filings with the Securities and Exchange
Commission, including Sontra's most recent Quarterly Report on Form 10-QSB.
Forward-looking statements represent management's current expectations and
are inherently uncertain. We do not undertake any obligation to update
forward-looking statements made by us.
SonoPrep is a registered trademark of Sontra Medical Corporation. All
other company, product or service names mentioned herein are the trademarks
or registered trademarks of their respective owners.
Investor Relations Contacts:
Harry G. Mitchell, CFO
+1-508-530-0311
hmitchell@sontra.com
SOURCE Sontra Medical Corporation
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Related links:
http://www.sontra.com
CONTACT:
Harry G. Mitchell, CFO of Sontra Medical
Corporation, +1-508-530-0311, hmitchell@sontra.com
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