Entero Therapeutics, Inc. announced a 1 for 3 reverse stock split of its common stock.
The reverse stock split aims to regain compliance with Nasdaq Listing Rule 5550(a)(2).
The company expects its common stock to start trading on a split-adjusted basis on August 18, 2025.
Reverse Stock Split
Company will combine every 3 shares into 1, reducing outstanding common stock.
Listing Requirement Compliance
Action taken to maintain Nasdaq market listing and enhance shareholder value.
CEO's Statement
Richard Paolone views the reverse split as a necessary step for market visibility and credibility.
- The reverse stock split will adjust the common stock structure from approximately 4.77 million shares to about 1.59 million shares.
- Stockholders will not receive fractional shares, but cash in lieu of fractions.
- This move could potentially affect the stock's trading dynamics and investor perception.
The reverse stock split by Entero Therapeutics, Inc. reflects a strategic decision to ensure listing compliance and strengthen shareholder value in the market.