PHOENIX - SenesTech, Inc. (NASDAQ: SNES), a company specializing in fertility control for animal pest populations, has announced a reverse stock split of its common stock at a ratio of 1-for-10, set to take effect after market close on Monday, July 24, 2024.
The company's common stock will begin trading on a split-adjusted basis on the Nasdaq Capital Market under the existing ticker symbol "SNES" from the start of trading on July 25, 2024.
The decision for the reverse stock split follows the authorization granted by the company's stockholders at the annual meeting on July 11, 2024, allowing the Board of Directors to amend its Amended and Restated Certificate of Incorporation. The chosen ratio falls within the approved range of 1-for-2 to 1-for-20.
At the time of the reverse stock split, every 10 shares of issued common stock will be automatically converted into one share of common stock. This action will proportionally reduce the number of issued shares from approximately 5.1 million to around 514,464 shares.
Adjustments will also be made to the number of shares issuable upon the exercise or conversion of SenesTech's equity awards and warrants, along with the applicable exercise prices.
The reverse stock split is designed to affect all stockholders uniformly and will not change any stockholder's percentage interest in the company's equity, except for adjustments due to fractional shares.
Stockholders owning fractional shares as a result of the split will see those shares rounded up to the nearest whole share if held directly, or rounded down if associated with an equity award, to comply with tax regulations.
Stockholders with shares in brokerage accounts will have their holdings automatically adjusted. Those holding physical stock certificates can exchange them for new certificates reflecting the reverse split but are not required to do so.
In other recent news, SenesTech Inc. reported a significant 78% surge in its Q1 2024 revenue, reaching $415,000, largely driven by the successful launch of their new product, Evolve. However, the company registered a net loss of $1.8 million. SenesTech also completed an efficacy study demonstrating a 61% reduction in rodent populations using their product, indicating its effectiveness.
The company is expanding its distribution through a six-channel strategy and is optimistic about the potential impact of the introduction of Evolve Mouse on sales. Despite revenue growth, SenesTech faced a supply chain issue leading to the use of higher-cost ingredients, which has now been addressed with the anticipation of a gross profit margin of 60% or more going forward.
InvestingPro Insights
As SenesTech, Inc. (NASDAQ: SNES) prepares for a reverse stock split to consolidate its shares, investors might be curious about the company's financial health and market performance. Here are some key insights based on data and tips from InvestingPro that could shed light on SenesTech's current situation:
InvestingPro Data highlights that SenesTech has a market capitalization of approximately $2.5 million USD and is currently trading near its 52-week low, with a price of $0.54 USD at the previous close. The company has experienced a substantial revenue growth of 30.09% in the last twelve months as of Q1 2024, with a quarterly surge of 78.11% in Q1 2024, which could signal a potential turnaround or a growth phase for the company.
InvestingPro Tips suggest that while SenesTech holds more cash than debt on its balance sheet, indicating a solid liquidity position, it is also quickly burning through cash. Additionally, analysts are anticipating sales growth in the current year, which might be an encouraging sign for investors looking for growth opportunities.
Notably, the company does not pay a dividend to shareholders at this time, which may be relevant for those investors seeking income-generating investments. Moreover, with the stock price having performed poorly over the last decade and the company not being profitable over the last twelve months, potential investors should weigh these factors carefully.
For those interested in a deeper analysis, there are additional PRONEWS24 InvestingPro Tips available which could provide further guidance on whether SenesTech's current financial trajectory aligns with their investment strategy. With the use of the coupon code PRONEWS24, investors can access these additional tips with up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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