Nasdaq-listed late-stage biotech firm Advaxis, Inc. (NASDAQ:ADXS) focusses on discovery, development, and commercialization of immunotherapy products. The latest from this company is its announcement on Thursday that its Board of Directors approved a one-for-fifteen (1-for-15) reverse stock split of its common stock.
The announcement triggered a sell-off, with the stock falling at least 20% to hit about $0.34 a share from Thursday’s opening of 45 cents a share.
The stock split will become effective on Friday, March 29, 2019, upon the filing of a Certificate of Amendment to its Certificate of Incorporation with the Secretary of the State of Delaware.
Beginning Friday, Advaxis’ common stock would trade on the Nasdaq Global Select Market on a reverse split-adjusted basis under the new CUSIP number 007624307.
ADXS share 1-for-15 reverse split on Friday
As previously disclosed by the company, the company’s stockholders approved a proposal authorizing the Board of Directors to effect a reverse stock split by a ratio of not less than one-for-ten (1-for-10) and not more than one-for-twenty-five (1-for-25).
“The reverse stock split uniformly affects all issued and outstanding shares of the Company’s common stock. The reverse stock split will not alter any stockholder’s percentage ownership interest in Advaxis, except to the extent that the reverse stock split results in fractional shares. No fractional shares will be issued in connection with the reverse stock split,” read a company statement.
Stockholders who are entitled to receive a fractional share would instead receive a cash payment based on ADXS closing sales price on March 28, 2019. The par value of the stock would remain unchanged at $0.001 per share following the reverse stock split.
The reverse split is expected to bring the closing bid price of the stock above the $1-per-share required to continue the listing of the common stock on the Nasdaq Global Select Market.
The reverse stock split would cut down the number of shares issued and outstanding to just about 5.5 million from 82.6 million.