In a bold move to reshape its market presence, GRI Bio Inc, a biotech trailblazer focused on NKT cell modulators for treating various diseases, recently unveiled plans for a 1-for-7 reverse stock split, a decision greenlit by its board of directors and endorsed by stockholders during a special meeting held on January 19, 2024.
The Reverse Stock Split, set to take legal effect on January 29, 2023, at 4:01 p.m. Eastern Time, aims to rejuvenate GRI Bio’s standing on The Nasdaq Capital Market. The company’s common stock is slated to open for trading under a new CUSIP number, 3622AW 205, on January 30, 2024, under the current ticker symbol “GRI.” This strategic maneuver is driven by the company’s pursuit of compliance with the minimum bid price requirement for continued listing on The Nasdaq Capital Market.
The 1-for-7 Reverse Split is a transformative move that will automatically consolidate every seven existing shares of the company’s common stock into one share. No fractional shares will be issued in this process; instead, stockholders holding fractional shares post-split will receive a cash payment. The amount will be calculated by multiplying the fractional share value by the closing sale price of the common stock on The Nasdaq Capital Market, adjusted for the reverse stock split, on January 29, 2024.
This financial recalibration is expected to substantially reduce the number of outstanding common shares from approximately 4,520,233 as of January 22, 2024, to around 645,736 shares. It’s crucial to note that this reduction won’t impact the total authorized number of shares, emphasizing the strategic nature of the move.
Proportional adjustments will cascade across the company’s financial landscape, affecting exercise and conversion prices of outstanding stock options, warrants, and convertible securities. Similar adjustments will apply to the number of shares issued and issuable under the company’s stock incentive plans.
As this intricate corporate chess game unfolds, market observers are witnessing a surge in the stock value of GRI Bio. The stock, which closed at $2.67 before the announcement, experienced an initial dip to $2.62 but has since rebounded post-market open, currently trading higher.
At the time of this publication, GRI Bio Inc stock (GRI) has witnessed a surge.
GRI Bio Inc
Current Price: $3.57
Change : +3.18
Change (%): (833.32%)
Volume: 308.9K
Source: Tomorrow Events Market Data
Investors and analysts are closely monitoring these fluctuations, dissecting the implications of GRI Bio’s strategic maneuver and its potential to reshape the company’s trajectory in the competitive biotech landscape.
As GRI Bio Inc navigates the intricate currents of the market, only time will reveal the true impact of this reverse stock split on the company’s fortunes and the broader biotechnology sector. Investors and industry watchers are bracing themselves for a period of heightened volatility as the market absorbs and digests the implications of this calculated move.
