Nanogen Inc, San Diego, a developer of advanced diagnostic products, has filed a preliminary proxy statement with the Securities and Exchange Commission (SEC) for a special meeting of its stockholders.
Stockholders will vote on measures designed to increase available financing options, such as approval of the company’s debt financing in August 2007 and approval of an increase in the number of its authorized shares of common stock.
The company wants the board of directors—during the next year—to effect a reverse split of its common stock to improve trading of the stock and to maintain its listing on the NASDAQ Global Market.
These measures are a key component of restructuring plans announced in September 2007. The restructuring is expected to cut expenses by more than $20 million annually and to significantly reduce the cash needed to fund the business until positive cash flow is achieved.
Nanogen expects to achieve cash flow breakeven in late 2008, and will seek stockholder approval of measures that may enable the company to finance itself.
Stockholders will be informed of the meeting date after the SEC’s review of the preliminary proxy statement or, alternatively, the SEC’s decision not to review the statement.
Stockholders can obtain copies of the proxy statement and other documents filed with the SEC on the agency’s Web site.
