Full Press Release Details
Announces Preliminary Financial Results
for Second Quarter 2019 and Reverse Stock Split
$2.3 Million Net Revenue; 70% Growth Over Prior Year
Reiterates Full-Year 2019 Revenue Guidance
ORANGE, NJ, July 9, 2019 - Nephros, Inc. (OTCQB: NEPH), a commercial-stage company that develops and sells high performance
water purification products to the medical device and commercial markets, today announced preliminary financial results for the
quarter ended June 30, 2019. The Company also announced that its Board of Directors has approved a one-for-nine reverse stock
split of its common stock that will be effective at 5:30pm Eastern Daylight Time today.
revenues are expected to be approximately $2.3 million, an increase of 70% compared to the quarter ended June 30, 2018. Product
revenues increased 90% over the same period.
are pleased with the preliminary results of the second quarter of 2019 and reiterate our previous guidance for full-year revenue
of $8.5 to $9.5 million in 2019," said Daron Evans, President and CEO of Nephros. "The
reverse stock split is being effected as a part of our previously stated plan to uplist to a national stock exchange.
With our consistent growth trajectory and additional growth initiatives, we believe that the Company's value may be better
reflected by having the Company's stock listed on a national stock exchange and we continue to work on our plan to obtain
Company expects that, beginning with the opening of trading on July 10, 2019, the Company's common stock will trade on the
OTCQB Market on a split-adjusted basis under the new CUSIP number 640671400. The Company's common stock will continue to
trade under the symbol "NEPH."
of the Reverse Stock Split
reverse stock split affects all issued and outstanding shares of the Company's common stock, as well as the number of shares
of common stock available for issuance under the Company's equity incentive plan. In addition, the reverse stock split reduces
the number of shares of common stock issuable upon the exercise of stock options or warrants outstanding immediately prior to
the reverse stock split. The par value of the Company's common stock will remain unchanged at $0.001 per share after the
reverse stock split.
reverse stock split will affect all stockholders uniformly and will not alter any stockholder's percentage interest in the
Company's equity, except to the extent that the reverse stock split results in certain stockholders owning a fractional
share as described below.
reverse stock split will reduce the number of shares of common stock issued and outstanding from approximately 69.06 million to
approximately 7.67 million. Concurrently, the authorized number of shares of common stock will be set at 40 million, while the
authorized number of shares of preferred stock will remain at 5 million.
fractional shares will be issued in connection with the reverse stock split. Stockholders who would otherwise be entitled to receive
a fractional share will instead receive a cash payment based on the closing sales price of the Company's common stock on
Stock Transfer LLC is acting as the exchange agent and transfer agent for the reverse stock split. V Stock will provide instructions
to stockholders with physical certificates regarding the optional process for exchanging their pre-split stock certificates for
post-split stock certificates and receiving payment for any fractional shares. Additional information regarding the reverse stock
split can be found in the Company's definitive information statement filed with the Securities and Exchange Commission on
is a commercial stage company that develops and sells high performance water purification products to the medical device and commercial
markets. Nephros ultrafilters are primarily used in hospitals and medical clinics for added protection in retaining bacteria (e.g.,
Legionella, Pseudomonas) and viruses from water, providing barriers that assist in improving infection control in showers, sinks,
and ice machines. Additionally, Nephros ultrafilters are used by dialysis centers for assisting in the added removal of endotoxins
and other biological contaminants from the water and bicarbonate concentrate supplied to hemodialysis machines and patients.
filters, including AETHER brand filters, improve the taste and odor of water and reduce biofilm, bacteria, and scale build-up
in downstream equipment. Nephros and AETHER products are used in the health care, food service, hospitality, and convenience
more information about Nephros, please visit its website at www.nephros.com.
release contains forward-looking statements that are subject to various risks and uncertainties. Such statements include statements
regarding Nephros's expected revenue for the second quarter ended June 30, 2019 and the fiscal year ending December 31,
2019, its anticipated revenue trends, its plans for reverse-splitting its common stock and uplisting to a national stock exchange,
the timing of any such developments, and other statements that are not historical facts, including statements which may be accompanied
by the words "intends," "may," "will," "plans," "expects," "anticipates,"
"projects," "predicts," "estimates," "aims," "believes," "hopes,"
"potential" or similar words. Actual results could differ materially from those described in these forward-looking
statements due to certain factors, including changes in business, economic and competitive conditions, delays in integrating Biocon,
and the availability of financing or other capital when needed. These and other risks and uncertainties are detailed in Nephros's
reports filed with the U.S. Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December
31, 2018. Nephros does not undertake any responsibility to update the forward-looking statements in this release.