Sharps Technology Executes 1-for-300 Reverse Stock Split

Melville, New York-based Sharps Technology Inc. (NASDAQ:STSS), a medical device company facing significant market challenges with a 99.7% decline in stock value over the past year, has announced a significant change in its stock structure. On Monday, the company completed a reverse stock split of its common shares at a ratio of 1-for-300. This corporate action took effect at 11:59 p.m. Eastern Time on Sunday, April 27, 2025, and the shares began trading on a post-split basis under a new CUSIP number. According to InvestingPro data, the company’s market capitalization stands at just $0.27 million.

The reverse stock split was enacted through an amendment to Sharps Technology’s Second Amended and Restated Certificate of Incorporation. The objective of this adjustment is to consolidate existing shares of common stock into fewer shares, without altering the par value of $0.0001 per share. Shareholders will receive one new share for every 300 shares they previously owned. InvestingPro analysis reveals concerning financial metrics, including a weak current ratio of 0.61 and significant debt burden, with total debt to capital ratio at 0.93.

This strategic move is often employed by companies to boost the perceived value of their stock, improve liquidity, or meet stock exchange listing requirements. It is important to note that while the number of shares outstanding will decrease, the reverse stock split does not inherently affect the company’s market capitalization.

The details of the reverse stock split and the Charter Amendment are outlined in the Exhibit 3.1 of the company’s Current Report on Form 8-K filed with the Securities and Exchange Commission (SEC). Sharps Technology, which operates in the surgical and medical instruments sector, is also identified as an emerging growth company under SEC definitions.

Investors and stakeholders can refer to the company’s SEC filing for a comprehensive view of the Charter Amendment. The new CUSIP number assigned to the Sharps Technology common stock post-reverse split is 82003F 309. The information reported is based on the company’s latest 8-K filing with the SEC.

In other recent news, Sharps Technology Inc. has achieved compliance with Nasdaq listing requirements after addressing a previous failure to implement an executive compensation recovery policy, known as the "Clawback Policy." The company received confirmation from Nasdaq that its listing status is secure following the adoption of the policy. Additionally, Sharps Technology reported a significant exercise of its Series B Warrants, with 97% exercised on a cashless basis, signaling strong interest from warrant holders. The company had initially raised approximately $20 million from a public offering that included these warrants.

In contrast, Sharps Technology faces potential delisting from Nasdaq due to a stockholders’ equity shortfall and failure to meet the minimum bid price requirement. The company is engaged in a hearing process to address these issues, with no guarantee of meeting the necessary criteria. Meanwhile, Sharps Technology secured stockholder approval for the issuance of certain warrants, allowing for their exercise at a reduced floor price. This move is intended to enhance the company’s financial flexibility and strengthen its capital structure. These developments are part of Sharps Technology’s ongoing efforts to navigate challenges and expand its operations within the medical device industry.

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