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BROOMFIELD, CO - Aclarion, Inc. (NASDAQ:ACON, ACONW), a healthcare technology company with a current market capitalization of $0.4 million and trading at $0.03 per share, has announced an update to the timing and ratio of its forthcoming reverse stock split. According to InvestingPro data, the company’s stock has faced significant challenges, declining substantially over the past year. The action, aimed at maintaining compliance with Nasdaq’s continued listing standards, is now set to take effect before the market opens on Thursday, January 30, 2025, with a revised split ratio of 1-for-335.
The decision for the reverse stock split came after stockholders approved an amendment to the company’s Certificate of Incorporation on December 31, 2024. Aclarion’s Board of Directors subsequently established the 1-for-335 ratio. The company’s financial health score from InvestingPro currently stands at "Weak," with revenue declining by 41% in the last twelve months. Despite these challenges, the company maintains a healthy current ratio of 2.8, indicating sufficient liquidity to meet short-term obligations. With the amendment filed in Delaware effective January 29, 2025, at 5:00 p.m. Eastern Time, the consolidation will convert every 335 existing shares of common stock into one share.
Aclarion’s goal with the reverse stock split is to boost its common stock’s per share and bid price above the $1.00 minimum required by Nasdaq. The company’s common stock will be assigned a new CUSIP number (655187300) and will start trading on a split-adjusted basis from January 30, 2025.
This strategic move is not expected to alter the authorized number of shares of Aclarion’s common stock. Stockholders possessing less than 335 shares will be rounded up to one whole share, ensuring no fractional shares are issued. The reverse stock split will also proportionally adjust the company’s outstanding warrants, stock options, and restricted stock units, alongside their conversion or exercise prices.
Once the reverse stock split is effective, brokerage account holders will see their shares automatically adjusted. Those holding physical stock certificates will receive instructions from Aclarion’s transfer agent, Vstock Transfer, on the exchange process. The company anticipates a reduction in its issued and outstanding common shares from approximately 169.4 million pre-split to about 500,000 post-split.
Aclarion specializes in Magnetic Resonance Spectroscopy (MRS) and augmented intelligence algorithms to aid physicians in identifying the sources of chronic low back pain through its SaaS platform, Nociscan. Financial metrics from InvestingPro reveal the company faces profitability challenges, with an EBITDA of -$4.65 million in the last twelve months. InvestingPro subscribers have access to 13 additional key insights about Aclarion’s financial position and market performance.
This news report is based on a press release statement and contains forward-looking statements that involve risks and uncertainties. These statements reflect the company’s current plans, which may differ materially in the future as outlined in filings with the Securities and Exchange Commission.
In other recent news, Aclarion, Inc. has terminated its At-The-Market Issuance Sales Agreement with Ascendiant Capital Markets, LLC, ceasing its ability to sell shares of its common stock through the "at the market" offering. In another significant development, shareholders approved several key proposals at Aclarion’s annual meeting, including a reverse stock split and amendments to the company’s equity incentive plan. The company has also extended its equity line agreement with White Lion Capital, LLC, introducing new pricing options for shares sold under the agreement and issuing White Lion 560,915 commitment shares. These recent developments are part of Aclarion’s broader business strategy. In relation to the company’s financial health, it’s worth noting that during the term of the Sales Agreement with Ascendiant Capital, Aclarion sold approximately 1.6 million shares, resulting in gross proceeds of around $300,000. As for the equity line agreement with White Lion, there are around $6.8 million worth of new shares remaining for purchase as of September 30, 2024. All these developments are based on the company’s latest SEC filings.
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