AquaBounty Technologies’ board of directors has approved a 1-for-20 reverse stock split of its common stock, to be executed at 12:01 a.m. on 16 October.
The company, which plans to build a recirculating aquaculture system (RAS) facility in Pioneer, Ohio, U.S.A. to raise genetically engineered salmon, announced it would pursue a reverse stock split in early September after the company’s stock continued to remain below the USD 1.00 (EUR 0.95) threshold it needs to maintain its listing on the Nasdaq Capital Market. The company was first warned on 31 October, 2022, that it needed to bring its share price above USD 1.00 to remain listed.
The company was given 180 days to raise its share price above USD 1.00, and was later given an extension to 30 October, 2023.
“The reverse stock split is intended to bring the company into compliance with the minimum bid price requirement for continued listing on the Nasdaq Capital Market,” AquaBounty said in a release on 13 October.
The reverse stock split will consolidate the number of shares the company has, with the 1-for-20 split converting 20 current shares into one new share of the stock. According to AquaBounty, after the reverse split, the company’s stock will be reduced from approximately 71.36 million shares to 3.57 million shares.
Computershare Trust Company, AquaBounty’s transfer agent, will act as the exchange agent for the reverse stock split, the company said.
The move comes as AquaBounty’s share price sat near a 52-week low of USD 0.21 (EUR 0.19) per share as of 13 October. Following the warning from the Nasdaq Capital Market, the company’s stock briefly went back above USD 1.00 in late January, but it did not remain above the threshold for long enough to meet the Nasdaq Capital Market’s requirements.
The decision to execute a reverse stock split also comes in the wake of the company pausing construction on its Ohio-based facility after cost estimates ballooned from USD 375 million to USD 395 million (EUR 356 million to EUR 375 million), well beyond the initial estimate of USD 200 million (EUR ). The construction pause preceded a Q2 results presentation which indicated the company’s losses widened and revenue dropped.
Photo courtesy of AquaBounty Technologies
