P3 Health Partners Announces 1-for-50 Reverse Stock Split

P3 Health Partners Inc. (NASDAQ:PIII), a healthcare services provider with a market capitalization of $61.23 million, announced today a reverse stock split of its common stock at a 1-for-50 ratio, effective at 5:00 p.m. Eastern Time on April 11, 2025. The action follows approval by the company’s Board of Directors and stockholders. The decision comes as the stock has declined nearly 79% over the past year, according to InvestingPro data.

The reverse split was initially proposed and approved by stockholders at a Special Meeting on March 31, 2025. This decision was made to consolidate shares and is expected to increase the per-share trading price of the company’s Class A common stock, currently trading at $0.17, allowing it to maintain compliance with Nasdaq’s minimum bid price requirement. InvestingPro analysis indicates the company operates with significant debt burden and faces cash burn challenges, with more detailed insights available in the Pro Research Report.

As a result of the reverse split, the number of shares of Class A common stock will be reduced proportionally, with corresponding adjustments to the company’s outstanding equity awards, warrants, and shares issuable under equity incentive plans. The par value and other terms of the common stock will remain unchanged.

The company’s Class A common stock will begin trading on a split-adjusted basis when markets open on April 14, 2025, retaining the ticker symbol "PIII." The new CUSIP number for the Class A common stock will be 744413 204. P3 Health Partners’ public warrants will continue to trade on Nasdaq under the symbol "PIIIW."

No fractional shares will be issued in connection with the reverse stock split. Stockholders who would have been entitled to a fractional share will instead receive a cash payment based on the closing price of the Class A common stock on the Effective Date, as adjusted for the reverse split.

This move is a strategic effort by P3 Health Partners to optimize its capital structure and is a common practice among public companies seeking to align their stock price with market and exchange standards. Despite current challenges, InvestingPro’s Fair Value analysis suggests the stock may be undervalued, with additional financial health metrics and 10 exclusive ProTips available to subscribers.

The information in this article is based on a press release statement.

In other recent news, P3 Health Partners Inc. announced its fourth-quarter 2024 financial results, revealing a revenue of $371 million, which was below analyst expectations of $378 million. The company reported an adjusted loss per share of $0.36, missing the forecasted loss of $0.19. Despite these setbacks, P3 Health Partners reaffirmed its guidance for 2025, projecting revenues between $1.35 billion and $1.5 billion and an adjusted EBITDA range from a loss of $35 million to a gain of $5 million. BTIG maintained a Neutral rating on the company’s stock, citing concerns over increased unit costs and limited visibility into future performance.

Additionally, P3 Health Partners approved a reverse stock split at a ratio between 1-for-10 and 1-for-60, to be determined by the Board of Directors. This decision was made following significant shareholder support during a Special Meeting of Stockholders. The company also highlighted an incremental EBITDA benefit of over $130 million, driven by strategic initiatives aimed at improving profitability. Despite the earnings miss, P3 Health Partners expressed optimism about achieving profitability in 2025, with improvements expected in the Medicare sector. The company is also focusing on expanding capitation contracts and enhancing its operational efficiencies to support its financial goals.

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