BioNexus Gene Lab announces reverse stock split

BioNexus Gene Lab Corp (NASDAQ:BGLC), a medical laboratory services provider with a market capitalization of $4.47 million, has announced a reverse stock split of its common stock shares, effective from the start of trading on Monday. This move is aimed at addressing the company’s bid price deficiency under NASDAQ rules. According to InvestingPro data, BGLC’s stock has declined over 57% in the past year, with shares currently trading at $0.25.

The reverse stock split was approved by the company’s shareholders on March 19, 2025, and subsequently ratified by the Board of Directors on the same day. The split will see every ten shares of issued and outstanding common stock converted into one share of common stock. The new CUSIP number for the company will be 090628306. InvestingPro analysis suggests the stock is currently undervalued, with 16 additional key insights available to subscribers.

This strategic decision is part of BioNexus Gene Lab’s efforts to maintain compliance with NASDAQ’s minimum bid price requirement. The company’s closing bid price must remain above $1.00 per share for at least 10 consecutive trading days before May 1, 2025, to regain compliance, provided no other deficiencies occur.

Shareholders will not receive fractional shares as a result of the reverse split. Instead, they will be compensated with a cash payment based on the closing price of BioNexus Gene Lab’s common stock on the NASDAQ on April 4, 2025, the trading day before the reverse split takes effect. These fractional shares will be cancelled thereafter.

Securities Transfer Corporation will serve as the exchange agent for the reverse split. Shareholders with shares in electronic or brokerage accounts will see their holdings automatically adjusted. Those holding physical certificates will receive exchange instructions from the transfer agent. Despite recent challenges, InvestingPro data shows BGLC maintains a strong current ratio of 4.98 and holds more cash than debt on its balance sheet, though the company’s overall financial health score remains weak.

The reverse stock split is designed to be neutral in its effect on shareholders’ proportional voting power and percentage ownership interests, aside from the elimination of fractional shares.

The company filed the Articles of Amendment regarding the reverse stock split with the Wyoming Secretary of State on April 1, 2025. The full details of the amendment are attached as Exhibit 3.7 in the SEC filing.

This report is based on a press release statement.

In other recent news, BioNexus Gene Lab Corp has adopted Ethereum as its primary treasury asset, marking it as the first Nasdaq-listed company to make this strategic shift. This decision aligns with Ethereum’s inclusion in the US Crypto Strategic Reserve and reflects the company’s confidence in Ethereum’s potential for financial infrastructure. The move is supported by Wyoming’s progressive blockchain laws, which have influenced BioNexus Gene Lab’s strategic direction. Additionally, the company has issued a single share of Series Z Convertible Preferred Stock as part of a significant change to its corporate structure. This stock, holding five billion votes, is designed to influence the outcome of a Reverse Stock Split proposal at an upcoming Special Shareholders’ Meeting. The issuance aims to ensure compliance with Nasdaq rule 5640, focusing on fair shareholder treatment during voting. The Series Z Preferred Stock will not have voting power on other matters and can be canceled upon the approval of the Reverse Stock Split. BioNexus Gene Lab has emphasized that this stock has no additional rights or privileges beyond its intended purpose.

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