Ekso Bionics sets new date for reverse stock split

Published 21/05/2025, 21:42
Ekso Bionics sets new date for reverse stock split

SAN RAFAEL, Calif. - Ekso Bionics Holdings, Inc. (NASDAQ:EKSO), a company specializing in the development of exoskeletons for medical and industrial applications, has announced a revised schedule for its previously declared reverse stock split. The company, currently trading at $0.25 with a market capitalization of $7.26 million, has seen its stock decline nearly 78% over the past year. According to InvestingPro analysis, the stock is currently trading near its 52-week low of $0.24. The adjustment moves the effective date from May 27, 2025, to June 2, 2025, at 12:01 a.m. Pacific Time.

The reverse stock split, at a ratio of 1-for-15, is aimed at increasing the per-share trading price of Ekso Bionics’ common stock to comply with the Nasdaq’s minimum bid price requirement. InvestingPro data reveals that while the company faces challenges, it maintains a healthy current ratio of 2.35, indicating strong ability to meet short-term obligations. Get access to 14 additional ProTips and comprehensive analysis with an InvestingPro subscription. This corporate action was approved by shareholders at a special meeting on May 16, 2025, following a notice from Nasdaq on December 12, 2024, indicating the company’s non-compliance with the listing rules.

As the split takes effect, the number of outstanding shares will reduce from approximately 35.5 million to about 2.4 million, without altering the par value per share. Trading on The Nasdaq Capital Market will commence on a split-adjusted basis under the ticker symbol EKSO and a new CUSIP number 282644 400.

No fractional shares will be issued post-split; instead, shareholders will have their fractional entitlements rounded up to the nearest whole share. The reverse stock split will uniformly affect all issued and outstanding shares, as well as the number of shares issuable upon the exercise of outstanding stock options or warrants, and those to be received upon vesting of restricted stock units.

Stockholders who have their shares in electronic form do not need to take any action, as the adjustment will be made automatically by their brokerage firm or the trustee of the 401(k) plan. Those holding physical share certificates can contact the transfer agent, VStock Transfer, LLC, for information on exchanging their certificates.

This corporate move does not come with a reduction in the number of authorized shares of Ekso Bionics’ common stock and is not expected to significantly change any stockholder’s percentage interest in the company’s equity.

Ekso Bionics, headquartered in the San Francisco Bay Area, continues its commitment to enhancing human potential through its exoskeleton technology, aiding those with paralysis and supporting workers in various industries. The company generates annual revenue of $17.54 million, though InvestingPro analysis indicates it’s currently burning through cash rapidly. Discover detailed insights and access the comprehensive Pro Research Report, available for over 1,400 US stocks, to make more informed investment decisions.

The company’s decision to implement the reverse stock split and the anticipated effects of this action are based on the information provided in the press release statement issued by Ekso Bionics Holdings, Inc.

In other recent news, Ekso Bionics reported a disappointing financial performance for the first quarter of 2025. The company posted a revenue of $3.4 million, which was a 10% decline compared to the previous year and fell short of the $4.8 million forecast. Earnings per share were reported at -$0.12, missing the estimated loss of -$0.08. H.C. Wainwright responded by cutting the stock’s price target from $9.00 to $4.00, citing a decline in enterprise revenue due to customer budget cuts. Additionally, Ekso Bionics announced a 1-for-15 reverse stock split to help maintain its Nasdaq listing by meeting the minimum bid price requirement. Despite these challenges, the company continues to focus on expanding its distribution network and maintaining strong gross margins. Ekso Bionics anticipates a recovery in enterprise sales from integrated delivery networks this year, although this is contingent on an improvement in the broader economic climate. The company is also exploring cost-saving initiatives to mitigate financial impacts if necessary.

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