Glucotrack announces 1-for-20 reverse stock split

RUTHERFORD, N.J. - Glucotrack, Inc. (NASDAQ:GCTK), a medical device company specializing in diabetes care technology, has announced a 1-for-20 reverse stock split of its issued and outstanding common stock, set to take effect at the start of trading on February 4, 2025. The company, currently trading at $0.09 with a market capitalization of $1.5 million, has seen its stock decline nearly 75% year-to-date according to InvestingPro data. This strategic move aims to comply with Nasdaq’s minimum bid price requirement and potentially broaden the company’s appeal to institutional investors. InvestingPro analysis reveals concerning fundamentals, with the company receiving a "WEAK" Financial Health score and showing signs of rapid cash burn. Subscribers can access 6 additional key ProTips about GCTK’s financial position.

The reverse stock split will convert every 20 shares of existing common stock into one share. Consequently, the total number of outstanding shares will decrease from approximately 155.5 million to around 7.8 million. The company’s current ratio of 0.14 indicates significant liquidity challenges, with short-term obligations exceeding liquid assets. Glucotrack’s ticker symbol on the Nasdaq Capital Market will remain unchanged, and the new CUSIP number for the post-split common stock will be 45824Q705.

Shareholders will not see a change in their ownership percentage, barring adjustments for fractional shares. Fractional shares will not be issued; instead, shareholders will receive a rounded-up whole share in place of any fractional entitlement. This adjustment will occur automatically without the need for shareholder action.

The reverse stock split follows approval from Glucotrack’s stockholders at a special meeting on January 3, 2025, and subsequent determination by the Board of Directors on January 28, 2025. VStock Transfer, LLC will manage the exchange process, providing transaction statements to each shareholder post-split.

This corporate action is part of Glucotrack’s efforts to meet Nasdaq’s listing standards, specifically the $1.00 minimum bid price requirement. The company also anticipates that the adjusted stock price will be more attractive to a wider range of investors.

Glucotrack is currently developing an implantable continuous blood glucose monitoring system designed to last three years, with minimal calibration and no on-body wearable component, catering to the needs of people with diabetes. The company’s stock shows low correlation with market movements, with a beta of -0.28, making it a potentially interesting diversification opportunity for investors seeking non-correlated assets. Get deeper insights and exclusive analysis with InvestingPro.

The information in this article is based on a press release statement from Glucotrack, Inc. and does not include any speculative content or endorsement of the company’s claims.

In other recent news, Glucotrack, Inc. has been making significant financial maneuvers. The medical device company has appointed Ted Williams as Vice President of Regulatory Affairs to advance their continuous blood glucose monitoring system. Glucotrack has also issued 134.78 million shares of common stock following the exchange of Series B Warrants by certain holders, and entered into a sales agreement with Dawson James Securities, Inc. to offer shares of common stock up to $8.23 million.

In addition, Glucotrack has initiated a public offering with the aim of raising $10 million in gross proceeds by issuing approximately 7.2 million shares. The company is currently evaluating options to address non-compliance with the Nasdaq’s minimum bid price requirement.

Furthermore, Glucotrack has entered several definitive agreements following the closure of its public offering and concurrent private offering, resulting in the sale of over 2.4 million shares of common stock, nearly 4.8 million pre-funded warrants, and over 7.1 million each of Series A and Series B Warrants.

Lastly, Glucotrack’s Continuous Blood Glucose Monitor (CBGM) technology demonstrated high accuracy in a preclinical study, and the company has made strategic additions to its board and recruited a new Vice President of Clinical Operations. These recent developments highlight Glucotrack’s ongoing strategic efforts within the medical instruments and apparatus industry.

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