KemPharm Announces 1-for-16 Reverse Stock Split

CELEBRATION, Fla., Dec. 23, 2020 (GLOBE NEWSWIRE) -- KemPharm, Inc. (OTCQB: KMPH), a specialty pharmaceutical company focused on the discovery and development of proprietary prodrugs, today announced that the Company's Board of Directors has approved a 1-for-16 reverse stock split of its shares of common stock (“Reverse Stock Split”). KemPharm’s stockholders granted authority to the Board of Directors to effect this Reverse Stock Split of KemPharm’s common stock at the Special Meeting of Stockholders held on November 17, 2020. The Reverse Stock Split is intended to enable the Company to potentially regain its listing on the Nasdaq Capital Market.

The Reverse Stock Split is scheduled to take effect today, December 23, 2020, at 5:01 p.m. ET (the “Effective Time”). Shares of the Company’s common stock will be assigned a new CUSIP number (488445 206) and are expected to begin trading on a split-adjusted basis on Monday, December 28, 2020. The Company’s common stock will trade under a new and temporary ticker symbol “KMPHD” for a period of 20 business days including the effective date of the Reverse Stock Split. After the conclusion of the 20-business day period, KemPharm’s common stock will resume trading under its previous ticker symbol “KMPH.”

As a result of the Reverse Stock Split, every sixteen (16) shares of the Company’s pre-reverse split common stock will be combined and reclassified into one (1) share of common stock. By doing so, the number of outstanding shares of the Company's common stock will be reduced from approximately 72.5 million to approximately 4.5 million shares.   No fractional shares of common stock will be issued to any stockholders in connection with the Reverse Stock Split. Any fractional shares resulting from the Reverse Stock Split will be paid to each stockholder in an amount in cash resulting from multiplying (i) the closing sales price of the Company’s common stock as reported on the OTC Markets Venture Market on December 23, 2020 by (ii) the number of shares of the Company’s common stock held by such stockholder before the Reverse Stock Split that would otherwise have been exchanged for such fractional share interest.