Entero Therapeutics, Inc. announced a 1 for 3 reverse stock split of its common stock, effective on August 18, 2025.
The reverse stock split is part of a plan to regain compliance with Nasdaq listing requirements, specifically maintaining a minimum bid price of $1.00 per share.
The Board of Directors and shareholders approved the reverse stock split.
Reverse Stock Split
The reverse stock split combines every 3 shares into 1 share, reducing outstanding shares from 4.77 million to 1.59 million.
Listing Compliance
The reverse split aims to meet Nasdaq Listing Rule 5550(a)(2) requiring a $1.00 minimum bid price for continued listing.
CEOs Comment
Interim CEO, Richard Paolone, emphasized the importance of maintaining Nasdaq listing for shareholder value.
- The reverse stock split enhances the company's visibility and credibility on the Nasdaq market.
- Reducing the outstanding shares may lead to increased share price potential for investors.
The reverse stock split by Entero Therapeutics, Inc. demonstrates a strategic move to comply with Nasdaq requirements and improve shareholder value.