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BioNexus Gene Lab Corp (NASDAQ:BGLC), a medical laboratory services provider with a market capitalization of $3.9 million, has announced a one-for-ten reverse stock split of its common stock, effective as of 12:01 a.m. Eastern Time on Monday. The company's shares, which have declined over 66% in the past year according to InvestingPro data, began trading on a split-adjusted basis on the Nasdaq Capital Market under the existing ticker symbol "BGLC" on the same day.
Prior to the reverse stock split, BioNexus had 17,967,663 shares of common stock issued and outstanding. Following the reverse split, the number of outstanding shares was reduced to 1,796,597. The reverse stock split was executed to help the company regain compliance with Nasdaq's Minimum Bid Price Rule by the deadline of May 1, 2025. InvestingPro analysis indicates the company's overall financial health score is rated as WEAK, with negative EBITDA of $0.32 million in the last twelve months.
In lieu of issuing fractional shares, BioNexus Gene Lab has provided shareholders with a cash payment based on the volume-weighted average price (VWAP) of the stock over the ten trading days preceding the reverse split. The company has corrected the cash payment price previously reported, ensuring shareholders receive the appropriate value for any fractions of shares.
This strategic move by BioNexus Gene Lab is part of the company's efforts to meet Nasdaq's listing requirements and enhance the appeal of its stock to investors. The information is based on the company's recent SEC filing.
In other recent news, BioNexus Gene Lab Corp has announced a reverse stock split of its common shares, converting every ten shares into one. This move is part of the company's strategy to address NASDAQ's minimum bid price requirements. Shareholders will not receive fractional shares but will be compensated with cash based on the closing price before the split takes effect. Additionally, BioNexus Gene Lab has made a notable change in its treasury strategy by adopting Ethereum as its primary treasury asset, marking it as the first company on the Nasdaq to focus exclusively on Ethereum for this purpose. This decision aligns with the company's belief in Ethereum's potential and Wyoming's supportive blockchain laws. Furthermore, the company has issued a single share of Series Z Convertible Preferred Stock with significant voting power to influence the approval of the reverse stock split. This preferred stock is designed to ensure fair treatment of shareholders during the voting process. These developments reflect BioNexus Gene Lab's ongoing efforts to align its corporate strategies with emerging financial technologies and regulatory requirements.
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