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Nuwellis, Inc. (NASDAQ:NUWE), a medical device company with $8.79 million in trailing twelve-month revenue and a market capitalization of $1.11 million, announced Wednesday that its board of directors has appointed John L. Erb as Chief Executive Officer and President. Mr. Erb, age 76, has served as a director since September 2012 and as chairman of the board since October 2012. He previously held the role of president and CEO from November 2015 to January 2021 and was interim CEO since February 2025.
Mr. Erb’s employment agreement, dated June 27, 2025, provides for a 12-month term beginning May 20, 2025, with the possibility of extension upon mutual agreement. His annual base salary is $431,097, subject to annual review, and he is eligible for incentive compensation targeted at 65% of base salary. Mr. Erb was also granted an option to purchase 115,329 shares of common stock, vesting in 12 equal monthly installments. He will continue to serve as chairman of the board.
In a separate development, the board approved a one-for-forty-two reverse stock split of Nuwellis’ common stock. The company filed a Certificate of Amendment with the Delaware Secretary of State on Wednesday to effect the split, which will become effective at 5:00 p.m. Eastern Time on Thursday. Nuwellis’ common stock will begin trading on a split-adjusted basis on the Nasdaq Capital Market at the market open on Monday.
Following the reverse stock split, every forty-two shares of issued and outstanding common stock will be converted into one share, with no change to the par value per share. Despite recent stock performance challenges, InvestingPro data shows the company maintains strong liquidity with a current ratio of 2.23 and holds more cash than debt on its balance sheet. Discover comprehensive analysis of 1,400+ stocks like Nuwellis through InvestingPro’s detailed research reports. Proportionate adjustments will be made to the exercise price and number of shares issuable upon conversion of preferred stock and exercise of outstanding options, restricted stock units, and warrants. Fractional shares will be rounded down to the nearest whole share, with cash paid for any fractional interest based on the closing sales price prior to the split.
Nuwellis’ common stock will continue to trade under the symbol “NUWE,” and the new CUSIP number will be 67113Y702. Equiniti Trust Company, LLC will serve as the exchange agent for the reverse split.
This information is based on a press release statement contained in a recent SEC filing.
In other recent news, Nuwellis Inc. reported a 3% increase in revenue for the first quarter of 2025, despite experiencing a net loss of $3 million. The company highlighted a reduction in operating expenses by 31%, contributing to a more sustainable financial outlook. In a significant corporate development, John Erb has been appointed as the permanent CEO, transitioning from his interim role. Nuwellis also entered into a securities exchange agreement with Erb, involving the issuance of Series F-1 Convertible Preferred Stock. Additionally, the company announced a public offering, including shares of common stock and warrants, with the anticipated use of proceeds for working capital and potential acquisitions. Ladenburg Thalmann & Co. Inc. is managing this offering. These recent developments reflect the company’s ongoing strategic initiatives and financial adjustments.
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