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SAN DIEGO, CA – Organovo Holdings, Inc. (NASDAQ:ONVO), a biotechnology company specializing in the development of 3D bioprinted tissues, has announced a reverse stock split of its common stock at a ratio of 1-for-12. The move, effective as of 5:00 p.m. Eastern Time on Thursday, aims to bring the company into compliance with Nasdaq’s minimum bid price requirement. According to InvestingPro data, the company’s stock has declined over 70% in the past year, with a current market capitalization of just $5.34 million.
The reverse stock split was authorized by Organovo’s stockholders on November 20, 2024, and the Board of Directors subsequently approved the specific ratio on March 6, 2025. For every twelve shares of existing common stock, shareholders will now hold one share. The par value will remain unchanged, and the adjustment will not materially alter shareholders’ proportional equity stakes, barring minor changes due to the elimination of fractional shares. InvestingPro analysis reveals concerning fundamentals, with the company receiving a weak financial health score of 1.18 out of 10, and showing signs of rapid cash burn.
Shareholders will not receive fractional shares in the new arrangement but will instead be compensated with cash payments based on the closing sales price of the stock on March 19, 2025. The common stock will continue to trade under the ticker symbol "ONVO," but with a new CUSIP number, 68620A302.
The reverse stock split also proportionately adjusts the number of shares available under the company’s equity incentive plans, reducing the total number of shares that can be issued.
The company’s common stock is expected to begin trading on a split-adjusted basis from the opening of the market today, Friday. Shareholders holding shares through brokerage accounts will see their holdings automatically adjusted. Those holding physical stock certificates will be contacted by Continental Stock Transfer & Trust Company with details on their post-split holdings and any cash in lieu of fractional shares.
This strategic move is part of Organovo’s efforts to maintain its listing on the Nasdaq Capital Market and improve the marketability of its common stock. The information provided is based on a press release statement from Organovo Holdings, Inc.
In other recent news, Organovo Holdings, Inc. announced a 1-for-12 reverse stock split, which will take effect soon. This move aims to align the company’s stock price with Nasdaq’s minimum bid price requirement. The reverse stock split will reduce the total number of issued and outstanding shares from approximately 21.4 million to about 1.8 million. In addition, Organovo has received a delisting warning from Nasdaq for failing to meet the minimum bid price requirement, and the company plans to request a hearing to avoid delisting.
On the management front, Organovo appointed Norman Staskey as the new Chief Financial Officer and President, following the retirement of the previous CFO, Tomas Hess (NYSE:HES). Staskey’s extensive experience in capital markets and mergers and acquisitions aligns with the company’s strategic interests. Meanwhile, the company has reported significant clinical progress, particularly with their lead drug, FXR314, which showed promising results in treating Metabolic Dysfunction-Associated Steatohepatitis and inflammatory bowel diseases. Organovo’s developments are based on recent press releases and SEC filings.
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