Aclarion announces reverse stock split effective January 29

Published 30/01/2025, 22:10
Aclarion announces reverse stock split effective January 29

Aclarion , Inc. (NASDAQ:ACON), a medical laboratory services provider with a current market capitalization of just $0.29 million, has announced a reverse stock split of its common stock at a ratio of 1-for-335, effective as of 5:00 P.M. Eastern Time on January 29, 2025. The company’s stock has faced significant headwinds, declining nearly 99% over the past year according to InvestingPro data. The move is expected to reduce the number of issued and outstanding shares from approximately 169.4 million to about 500,000 post-split shares. The reverse stock split was approved by the company’s board and stockholders in December 2024, with the specific ratio determined by the board in January 2025 without further stockholder approval. InvestingPro analysis indicates the stock is currently undervalued, though investors should note the company’s weak overall financial health score of 1.18 out of 5.

The reverse stock split has also affected the company’s outstanding warrants, stock options, and restricted stock units, with adjustments made to the number of shares into which these securities are convertible or exercisable. Correspondingly, the exercise prices of these securities will also be adjusted based on the terms of the reverse stock split.

Trading of Aclarion’s common stock on the Nasdaq on a split-adjusted basis began on Thursday, January 30, 2025, under the new CUSIP number 655187300. The company has stated that the authorized number of shares remains unchanged at 200 million.

In connection with the reverse stock split, Aclarion recently closed an underwritten public offering of units, which has brought the company’s gross proceeds to approximately $14.55 million before deductions. As a result, Aclarion expects its stockholders’ equity to be around $10.5 million as of January 30, 2025. The company maintains a healthy current ratio of 2.8, indicating sufficient liquidity to meet short-term obligations. Want deeper insights? InvestingPro subscribers have access to over 15 additional financial tips and metrics for Aclarion. This anticipated financial position suggests that the company believes it has regained compliance with Nasdaq’s minimum stockholders’ equity requirement for continued listing on The Nasdaq Capital Market.

This financial maneuver is detailed in a Certificate of Amendment filed with the Secretary of State of Delaware, which is included in the company’s 8-K filing with the Securities and Exchange Commission. The information in this article is based on a press release statement.

In other recent news, Aclarion, Inc. has announced a revised reverse stock split ratio of 1-for-335, aimed at maintaining compliance with Nasdaq’s continued listing standards. The decision followed the approval of an amendment to the company’s Certificate of Incorporation by stockholders and the establishment of the split ratio by Aclarion’s Board of Directors. The healthcare technology company’s reverse stock split is expected to boost the per share and bid price of its common stock above Nasdaq’s $1.00 minimum requirement.

In addition, Aclarion has terminated its At-The-Market Issuance Sales Agreement with Ascendiant Capital Markets, LLC, ceasing its ability to sell shares of its common stock through the "at the market" offering. During the term of the Sales Agreement, Aclarion sold approximately 1.6 million shares, resulting in gross proceeds of around $300,000.

Moreover, shareholders approved several key proposals at Aclarion’s annual meeting, including a reverse stock split and amendments to the company’s equity incentive plan. The company has also extended its equity line agreement with White Lion Capital, LLC, introducing new pricing options for shares sold under the agreement and issuing White Lion 560,915 commitment shares. These are the latest developments in Aclarion’s broader business strategy.

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