Helius Medical announces 1-for-15 reverse stock split

NEWTOWN, Pa. - Helius Medical Technologies, Inc. (NASDAQ:HSDT), a neurotech company specializing in neuromodulation therapies for balance and gait deficits, has announced a reverse stock split of its Class A common stock at a ratio of 1-for-15, effective after the market closes on May 1, 2025. The announcement comes as the company’s stock has declined nearly 93% over the past year, with shares currently trading at $0.28. According to InvestingPro analysis, the company’s overall financial health score is rated as WEAK, with multiple indicators suggesting significant challenges ahead. This corporate action will result in the consolidation of every 15 shares of issued and outstanding common stock into one share, without altering the par value of $0.001 per share or the authorized number of shares.

The reverse stock split was approved by shareholders at the annual meeting on April 21, 2025, as a strategic move to maintain compliance with Nasdaq’s continued listing standards. While the company maintains a positive aspect of holding more cash than debt on its balance sheet, InvestingPro data reveals concerning trends, including rapidly diminishing cash reserves and negative gross profit margins of -11.92%. Get access to 10+ additional ProTips and comprehensive analysis with an InvestingPro subscription. The board of directors determined the final ratio after being granted the discretion to choose a ratio between 1-for-2 and 1-for-30. Starting May 2, 2025, Helius Medical’s common stock will trade on a split-adjusted basis on The Nasdaq Capital Market under the existing ticker symbol HSDT.

As a result of this reverse split, the total number of outstanding shares will decrease proportionately from approximately 7.9 million to about 0.5 million. The reverse split will also proportionally adjust the number of shares issuable upon conversion of outstanding stock options and warrants, as well as their respective conversion and exercise prices. Shareholders who would otherwise hold a fractional share will receive a cash payment instead, calculated based on the closing sales price of the stock on the last trading day before the reverse split takes effect.

The new CUSIP number for the common stock following the reverse split is 42328V 884. Helius Medical’s authorized shares will remain unchanged at 150 million. Further details regarding the reverse stock split are available in the definitive proxy statement filed with the Securities and Exchange Commission on March 25, 2025, and on the company’s website under the Investor Relations section.

This announcement is based on a press release statement from Helius Medical Technologies. The company’s primary commercial product is the Portable Neuromodulation Stimulator (PoNS®), which is part of their technology platform aimed at improving neurological functions. With revenue of just $0.52 million in the last twelve months and an EBITDA of -$13.8 million, analysts tracked by InvestingPro do not anticipate profitability this year. Discover detailed insights and Fair Value estimates for over 1,400 stocks with an InvestingPro subscription.

In other recent news, Helius Medical Technologies has secured $1.3 million through a private placement, as disclosed in a recent SEC filing. The company entered into a securities purchase agreement involving promissory notes and common stock shares, with the transaction expected to close shortly. This financial move aims to bolster Helius’s working capital and general corporate purposes, with Maxim Group LLC acting as the placement agent. In another development, Helius has announced the launch of its subsidiary, Revelation Neuro, Inc., focusing on AI-driven brain-computer interface technology. This initiative seeks to enhance neurorehabilitation and is expected to leverage Helius’s existing intellectual property and data. Meanwhile, the company is facing a potential delisting from The Nasdaq Capital Market due to non-compliance with the Minimum Bid Price Requirement. Helius plans to appeal this decision, delaying any delisting actions until a hearing concludes. The company is also engaging with warrant holders to strengthen its financial position, contingent on stockholder approval at its upcoming Annual Meeting.

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