Entero Therapeutics, Inc., a clinical-stage biopharmaceutical company specializing in non-systemic therapies for gastrointestinal diseases, announced a 1 for 3 reverse stock split of its common stock.
The reverse split aims to meet the Nasdaq listing requirements by maintaining a minimum bid price of $1.00 per share.
This action will reduce the outstanding common stock from about 4.77 million shares to 1.59 million shares.
Purpose of Reverse Stock Split
To regain compliance with Nasdaq's listing requirement under Rule 5550(a)(2) by increasing share price.
Effect of Reverse Split
Combining every 3 shares into 1, reducing outstanding shares and no fractional shares will be issued.
CEO's Statement
Richard Paolone highlighted the importance of the Nasdaq listing for enhancing shareholder value.
- The reverse split demonstrates the Company's commitment to meeting regulatory standards and enhancing market credibility.
- By reducing outstanding shares, the Company aims to create a positive perception of its stock value among investors.
The reverse stock split is a strategic move by Entero Therapeutics to maintain its Nasdaq listing and strengthen shareholder confidence in the company's growth prospects.