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KUALA LUMPUR - BioNexus Gene Lab Corp. (NASDAQ:BGLC), a biotech firm focused on precision diagnostics and chemical solutions, has announced its return to compliance with Nasdaq’s minimum bid price requirement. Currently trading at $2.60, InvestingPro analysis suggests the stock is undervalued, despite experiencing a 52% decline over the past year. The company’s CEO, Sam Tan, stated that this reflects their strategic alignment and readiness for future growth, including pursuing an innovative roadmap, capital market engagement, and international expansion.
Having met the Nasdaq Listing Rule 5550(a)(2) again, which necessitates a minimum bid price of $1.00 per share, BioNexus Gene Lab Corp. views this as a key step in maintaining its Nasdaq listing—a vital component of its long-term strategy for global visibility and investor confidence. InvestingPro data reveals the company maintains a strong current ratio of 3.81, with more cash than debt on its balance sheet, suggesting solid short-term financial stability.
The company is advancing its RNA-based genomic diagnostics business, MRNA Scientific, through strategic partnerships and potential new product introductions. Its subsidiary, Chemrex, is also expanding to meet Southeast Asia’s demand for high-performance chemical raw materials, with a focus on sustainable development. With annual revenue of $9.51 million and a gross profit margin of ~14%, the company faces profitability challenges, as highlighted by InvestingPro’s comprehensive analysis, which includes 12 additional key insights available to subscribers.
In addition to regaining Nasdaq compliance, BGLC has fortified its corporate governance, internal controls, and market readiness. This includes appointing new independent board members, establishing an internal audit function, and engaging U.S.-based investment banking support for long-term value creation. The company’s market capitalization stands at $5.28 million, with its stock trading at a price-to-book ratio of 0.61, indicating potential value opportunity for investors.
BioNexus Gene Lab Corp., incorporated in Wyoming with operations throughout Malaysia and Southeast Asia, specializes in RNA-based blood diagnostics and industrial chemical raw materials supply. The company is committed to providing advanced healthcare diagnostics, sustainable materials, and digital asset innovation.
This announcement is based on a press release statement from BioNexus Gene Lab Corp.
In other recent news, BioNexus Gene Lab Corp has announced a one-for-ten reverse stock split of its common stock, effective immediately. This strategic decision is aimed at addressing the company’s bid price deficiency under NASDAQ rules and maintaining compliance with the minimum bid price requirement. The reverse stock split was approved by shareholders and ratified by the Board of Directors, reducing the number of outstanding shares significantly. Shareholders will receive cash payments instead of fractional shares, based on the stock’s volume-weighted average price prior to the split.
Additionally, BioNexus Gene Lab has made a notable shift in its treasury management strategy by adopting Ethereum as its primary treasury asset. This decision positions the company as the first on the Nasdaq exchange to focus exclusively on Ethereum, aligning with its growing institutional credibility and potential for financial infrastructure. The company has also issued a unique Series Z Convertible Preferred Stock, granting significant voting power to a board member to influence the approval of the reverse stock split, ensuring compliance with Nasdaq’s shareholder treatment rules.
These developments reflect BioNexus Gene Lab’s efforts to enhance its financial resilience and appeal to investors. The adoption of Ethereum and the execution of the reverse stock split are part of the company’s broader strategic initiatives. The company continues to explore innovative financial applications and management practices, supported by Wyoming’s progressive blockchain laws.
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