In a strategic move to enhance its per-share trading price and adhere to Nasdaq’s listing requirements, Intelligent Bio Solutions, a pioneering medical technology company specializing in intelligent, rapid, non-invasive testing solutions, has officially announced a 1-for-12 reverse split of its common stock.
The decision, approved by the company’s stockholders during the annual meeting on December 13, 2023, signals a proactive measure to address Nasdaq’s minimum share price requirement. The reverse split, set to become effective on January 26, 2024, at 5:00 pm (Eastern Time), will see the company’s common stock trading on The Nasdaq Capital Market under the adjusted symbol “INBS” and new CUSIP number 36151G600 starting January 29, 2024.
However, this strategic maneuver has not been without repercussions. Following the announcement, the stock of Intelligent Bio Solutions experienced a discernible decline, opening at $0.27 after closing Wednesday’s session at $0.30. Investors and market observers are closely monitoring the unfolding trading patterns in the aftermath of this significant corporate decision.
At the time of this publication, Intelligent Bio Solutions Inc stock (INBS) has witnessed a decline.
Intelligent Bio Solutions Inc
Current Price: $0.23
Change : -0.07
Change (%): (-24.27%)
Volume: 2.7M
Source: Tomorrow Events Market Data
The mechanics of the reverse stock split are noteworthy. Every 12 shares of common stock outstanding as of the effective date will be consolidated into one share, accompanied by a proportional adjustment to outstanding equity-based awards and other equity rights, including warrants. Importantly, no fractional shares will be issued, and stockholders entitled to a fractional share will see it rounded up to the nearest whole number.
Post-reverse split, the par value of Intelligent Bio Solutions’ common stock will remain unchanged at $0.01 per share, and the number of authorized shares will stand at 100 million. The company will have approximately 1,494,223 shares of common stock issued and outstanding.
The uniform impact of the reverse split across all stockholders aims to maintain equity interests, with the only potential deviation arising from fractional shares. This strategic move raises questions about the future trajectory of Intelligent Bio Solutions in the medical technology sector and how investors will navigate the altered landscape.
As the market adjusts to these developments, the company’s leadership and its board of directors will be under increased scrutiny, with stakeholders keenly observing the effectiveness of this maneuver in achieving its intended goals. Intelligent Bio Solutions’ journey post-reverse split promises to be a focal point for investors, analysts, and industry enthusiasts alike.
