Tivic Health shareholders approve reverse stock split proposal

In a recent special meeting, Tivic Health Systems , Inc. shareholders granted the Board of Directors authority to enact a reverse stock split. The meeting, which took place on January 31, 2025, saw a quorum with approximately 34.9% of outstanding shares represented. The decision comes as the company’s stock trades at $0.24, having declined over 80% in the past year according to InvestingPro data.

The approved reverse stock split will allow the Board to consolidate issued and outstanding shares of common stock at a ratio between 1-for-2 and 1-for-30. The specific ratio and timing, within twelve months from the date of the meeting, will be at the Board’s discretion without further shareholder input. InvestingPro analysis indicates the company currently holds more cash than debt, with a current ratio of 5.65, suggesting strong short-term liquidity despite market challenges.

Additionally, shareholders authorized the Board to adjourn the meeting to solicit further proxies if necessary. However, this measure was not enacted as the reverse stock split proposal passed without the need for additional solicitation.

These decisions align with the company’s objective to potentially increase the market price of its common stock, making it more attractive to investors and compliant with exchange listing requirements. The final vote tally for the reverse stock split stood at 3,028,943 for, 243,254 against, and 33,240 abstentions.

Tivic Health Systems, Inc., headquartered in Fremont, California, specializes in electromedical and electrotherapeutic apparatus. The company is listed on The Nasdaq Stock Market LLC under the ticker symbol (NASDAQ:TIVC). With a market capitalization of just $2.28 million, analysts anticipate sales growth in the current year, though profitability remains a challenge. InvestingPro subscribers have access to 12 additional key insights about TIVC’s financial health and market position.

This report is based on the company’s recent SEC filing, which provides details of the votes and proposals discussed during the special meeting.

In other recent news, Tivic Health Systems, a medical device company, faces potential delisting from the Nasdaq due to non-compliance with the exchange’s minimum bid price requirement. The company has requested a hearing to address the delisting notice and has proposed a reverse stock split to regain compliance. However, there is no guarantee of regaining compliance or of the company’s future on the Nasdaq Capital Market.

In addition, Tivic Health has recently issued a letter to its shareholders, outlining its ongoing commitment to delivering innovative healthcare solutions. The contents of the letter, which are expected to cover recent developments and future plans, have not been disclosed in detail.

These are recent developments for Tivic Health. The company’s communication efforts reflect its attempts to maintain transparency with its stakeholders amidst these challenges. Importantly, Tivic Health’s future remains uncertain pending the outcome of the Nasdaq hearing and the effectiveness of the proposed reverse stock split.

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