ZyVersa Therapeutics Inc, a leading clinical stage specialty biopharmaceutical company, made a significant announcement today regarding a 1-for-35 reverse stock split and an increase in authorized shares of capital stock. The decision, approved by the board of directors, aims to position ZyVersa Therapeutics for compliance with Nasdaq listing requirements and other strategic benefits. Following the announcement the stock of the company started to decline on Thursday afternoon.
At the time of this publication, Zyversa Therapeutics Inc stock (ZVSA) has witnessed a decline.
Zyversa Therapeutics Inc
Current Price: $0.07
Change : -0.03
Change (%): (-29.36%)
Volume: 11.7M
Source: Tomorrow Events Market Data
Stockholders voted in favor of these measures during the Company’s Annual Meeting of Stockholders on October 31, 2023. At the meeting, the board of directors received the mandate to determine the split ratio and execute the reverse stock split at their discretion.
The reverse stock split, set to become effective on December 4, 2023, at 4:01 pm Eastern Time, will consolidate every 35 shares of the Company’s issued and outstanding common stock into one share. Despite this consolidation, the par value per share of ZyVersa Therapeutics’ common stock will remain at $0.0001. Proportional adjustments will be made across equity awards, convertible securities, and warrants, including exercise prices, as well as the number of authorized shares reserved for equity incentive plans.
To ensure compliance with Nasdaq’s $1.00 minimum bid price requirement, among other advantages, the common stock is expected to begin trading on a reverse stock split-adjusted basis on The Nasdaq Global Market on December 5, 2023, at market open under the existing ticker symbol, “ZVSA.”
The Company’s transfer agent, Continental Stock & Trust Company, will act as the exchange agent for the reverse stock split. For registered stockholders holding pre-reverse stock split shares in electronic book-entry form, no action is required to receive post-reverse stock split shares. Similarly, stockholders with shares held in brokerage accounts or in “street name” will witness automatic adjustments to their positions, subject to each broker’s specific processes, without the need for additional action.
In conjunction with these developments, ZyVersa Therapeutics amended its certificate of incorporation, effective November 30, 2023, to increase the authorized number of shares of the Company’s capital stock from 111,000,000 to 251,000,000. Additionally, the number of authorized shares of common stock rose from 110,000,000 to 250,000,000.
The strategic decisions undertaken by ZyVersa Therapeutics underscore the Company’s commitment to optimizing its financial structure and ensuring continued compliance with market regulations. Analysts will be closely monitoring the market response following the reverse stock split as ZyVersa Therapeutics positions itself for future growth and sustainability.
