Entero Therapeutics, Inc. has announced a reverse stock split of its common stock.
The reverse split is intended to comply with Nasdaq listing requirements, specifically regarding the minimum bid price.
Shareholders will see a consolidation of shares, reducing the outstanding common stock.
CEO Richard Paolone emphasized the importance of maintaining the Nasdaq listing for shareholder value enhancement.
Reverse Stock Split Announced
Entero Therapeutics, Inc. (NASDAQ: ENTO) announces a 1-for-3 reverse stock split of its common stock.
Objective of the Reverse Split
The reverse split is aimed at maintaining Nasdaq listing compliance by ensuring a minimum bid price of $1.00 per share.
Impact on Outstanding Shares
At the effective time, every 3 shares of common stock will be combined into one, reducing outstanding shares from 4.77 million to 1.59 million.
- The reverse stock split will reduce Entero Therapeutics' outstanding common stock from approximately 4.77 million shares to approximately 1.59 million shares, enhancing stock price visibility.
- The move is part of the company's plan to regain compliance with Nasdaq listing requirements, specifically Rule 5550(a)(2) regarding minimum bid price.
- The CEO views the reverse split as essential for maintaining the Nasdaq market listing, highlighting its importance in enhancing shareholder value.
The reverse stock split by Entero Therapeutics, Inc. is a strategic move to maintain listing compliance on the Nasdaq market, aiming to enhance shareholder value.