SenesTech Inc, the forefront leader in fertility control for managing animal pest populations, experienced a remarkable surge in its stock value after implementing a reverse stock split. The market opened on November 17, 2023, and witnessed a significant uptick in SenesTech’s stock performance.
At the time of this publication, Senestech Inc stock (SNES) has witnessed a surge.
Senestech Inc
Current Price: $2.65
Change : +2.47
Change (%): (1,359.61%)
Volume: 1.8M
Source: Tomorrow Events Market Data
The reverse stock split, which involved a ratio of 1 post-split share for every 12 pre-split shares, took effect at 4:01 p.m. Eastern Time on November 16, 2023. Despite this substantial change, the company’s common stock continued to be traded on the Nasdaq Capital Market under the symbol “SNES.”
The decision to undergo a reverse stock split was not impulsive; rather, it followed a strategic move approved at a special meeting of stockholders held on August 18, 2023. During this meeting, the company’s stockholders granted SenesTech’s Board of Directors the discretion to effect a reverse stock split of the common stock through an amendment to its Amended and Restated Certificate of Incorporation. The approved ratio ranged from 1-for-2 to 1-for-12, with the specific ratio to be determined by the Board of Directors.
At the time of the reverse stock split, an automatic conversion occurred, with every 12 shares of the company’s issued common stock transforming into one issued share of common stock. Importantly, this conversion did not alter the par value per share. Shareholders holding shares through brokerage accounts experienced an automatic adjustment, reflecting the 1-for-12 reverse stock split. On the other hand, those holding shares in certificated form were not required to exchange their existing stock certificates unless they chose to do so voluntarily.
The impact of the reverse stock split was designed to be uniform across all stockholders, ensuring that it did not alter any individual’s percentage interest in the company’s equity. However, considerations were made for fractional shares resulting from the reverse stock split. Depending on whether the shares were held directly or subject to an award granted under the Company’s 2018 Equity Incentive Plan, fractional shares were either rounded up to the nearest whole share or rounded down to comply with the requirements of Sections 409A and 424 of the Internal Revenue Code of 1986.
As a result of the reverse stock split, the total number of issued shares of SenesTech’s common stock was reduced from 5,899,060 shares to approximately 491,589 shares. To maintain consistency, proportional adjustments were made to the number of shares issuable upon exercise or conversion of SenesTech’s equity awards and warrants, along with adjustments to the applicable exercise price.
SenesTech Inc’s strategic move with the reverse stock split has not only streamlined its equity structure but has also sparked a surge in its stock value, capturing the attention of investors in the market. The company’s continued commitment to innovative solutions in fertility control positions it as a prominent player in the management of animal pest populations.
