Codexis (NASDAQ:CDXS) to Distribute All Common Shares

Shares of Codexis (NASDAQ:CDXS) have largely rebounded after the news they were going to distribute all the common shares of stock in the company, generating concerns of dilution.

Olympia Capital Markets commented, "Maxygen, Inc., which formed Codexis in January 2002 as a wholly-owned subsidiary to operate its former chemicals business, today (Monday) announced that it will distribute substantially all of the shares of the common stock of Codexis that it owns, as well as approximately $30.0 million in cash, by way of pro rata special distributions to Maxygen’s stockholders...Although Codexis stock has pulled back 7% in today’s market in response to this news of an imminent large influx of shares into the marketplace, we believe, longer term, the resulting greater liquidity may widen the market for Codexis shares and help these shares’ performance."

Olympia maintains their "Buy" rating on Codexis, which closed Monday at $9.99, down by $0.01, or 0.10. Olympia has a price target of $13 on them.