Motus GI Holdings, a leading medical technology firm dedicated to enhancing endoscopic outcomes and patient experiences, made a significant announcement today regarding a 1-for-15 reverse stock split of its outstanding common stock. In response to this development, Motus GI’s stock experienced a notable decline.
At the time of this publication, Motus GI Holdings Inc stock (MOTS) has witnessed a decline.
Motus GI Holdings Inc
Current Price: $0.47
Change : -0.14
Change (%): (-23.06%)
Volume: 202.9K
Source: Tomorrow Events Market Data
Effective Thursday, November 2, 2023, the company’s common stock will commence trading on a split-adjusted basis. This trading will persist on the Nasdaq Capital Market under the familiar symbol “MOTS,” albeit with a new CUSIP number: 62014P504.
The primary objective of the reverse stock split is to elevate the per share trading price of Motus GI’s common stock, thereby meeting the minimum bid price prerequisite of $1.00 for continued listing on the Nasdaq Capital Market (Rule 5550(a)(2)).
Under this arrangement, every fifteen pre-split shares of common stock will consolidate into one share. Importantly, the total authorized shares of the company’s common stock will remain unaffected. The reverse stock split will be applied uniformly across all stockholders, preserving their percentage interest in the company’s equity. However, in cases where the split results in fractional shares, no such fractions will be issued. Instead, affected stockholders will receive a cash payment determined by the average closing price of the company’s common stock over the five (5) consecutive days preceding the reverse split’s effective date. This adjustment will also be extended to common stock obtainable through the exercise of Motus GI’s outstanding warrants and stock options, with corresponding modifications to their exercise prices, as well as within the framework of the company’s equity incentive plans.
The reverse stock split will lead to a reduction in the number of issued and outstanding common stock from approximately 8.7 million to roughly 0.6 million shares.
The stockholders of the Company voted in favor of the reverse stock split on September 21, 2023, with a majority of the votes cast in favor. They also granted the Company’s board of directors the discretionary authority to select a split ratio, ranging from 1-for-2 to 1-for-20. The board subsequently ratified the reverse stock split at a ratio of 1-for-15 on October 27, 2023.
Handling the logistical aspects of the reverse stock split, Continental Stock Transfer & Trust Company has been designated as the exchange agent and transfer agent for the process.
