Entero Therapeutics, Inc. announced a 1 for 3 reverse stock split of its common stock.
The reverse stock split is aimed at regaining compliance with Nasdaq Listing Rule 5550(a)(2).
The split will reduce the outstanding common stock from approximately 4.77 million shares to approximately 1.59 million shares.
Purpose of Split
To maintain listing on the Nasdaq market and enhance shareholder value.
Shareholder Impact
Every 3 shares will be combined into 1 share, reducing outstanding shares.
Fractional Shares Handling
No fractional shares will be issued, shareholders entitled to receive cash instead.
CEO Statement
Richard Paolone emphasized the importance of Nasdaq listing for visibility and credibility.
- The reverse stock split is a strategic move to align with Nasdaq regulations and maintain the company's market presence.
- Reducing the outstanding shares can affect the stock's price dynamics and market perception.
- Ensuring compliance with listing requirements is crucial for the company's reputation and attractiveness to investors.
Entero Therapeutics, Inc. aims to solidify its position in the market by implementing the reverse stock split and focusing on developing targeted therapies for gastrointestinal diseases.