Seelos Therapeutics, a clinical-stage biopharmaceutical company specializing in therapies for central nervous system disorders and rare diseases, made a significant announcement today. The Board of Directors has given the green light to a 1-for-30 reverse stock split of the outstanding common shares of Seelos Therapeutics, slated to take effect at 12:01 a.m. Eastern Time on Tuesday, November 28, 2023.
Seelos Therapeutics’ Wednesday trading session closed at $0.16 per share. Interestingly, the stock began Friday’s trading at the same price. However, the share value experienced a sudden downturn post-announcement and currently stands at $0.13.
At the time of this publication, Seelos Therapeutics Inc stock (SEEL) has witnessed a decline.
Seelos Therapeutics
Current Price: $0.13
Change : -0.04
Change (%): (-24.66%)
Volume: 3.9MInc
Source: Tomorrow Events Market Data
Post-reverse stock split, the company’s common stock is set to commence trading on a Nasdaq Capital Market adjusted basis on Tuesday, November 28, 2023. The stock will continue to trade under the symbol “SEEL,” but with a new CUSIP number, 81577F208. This strategic move aims to bring Seelos Therapeutics back into compliance with the Nasdaq Capital Market’s minimum bid price requirement of $1.00 per share for sustained listing.
Upon the effective time of the reverse split, every 30 issued and outstanding shares of the company’s common stock will be automatically converted into one share without altering the par value. It’s important to note that fractional shares resulting from the reverse stock split will be rounded up to the nearest whole share.
This maneuver will significantly reduce the number of authorized shares of Seelos Therapeutics’ common stock from 480,000,000 shares to 16,000,000 shares. Importantly, the ownership percentage of each stockholder will remain unchanged, except for adjustments arising from fractional shares. The reverse stock split will also be applicable to the company’s common stock available for exercise through outstanding warrants and stock options. Proportionate adjustments will be made to the exercise prices under the equity incentive plans.
In practical terms, the reverse stock split will result in a substantial reduction in the number of issued and outstanding shares, dropping from approximately 167.7 million to approximately 5.6 million.
Seelos Therapeutics, through this strategic move, aims to position itself for sustained growth and to meet Nasdaq compliance standards. Investors will be closely monitoring the market’s response in the coming weeks as the reverse stock split takes effect.
