- A 1-for-15 reverse split of Avenue Therapeutics (ATXI) has gone into effect. These are the details.
A 1-for-15 reverse split of Avenue Therapeutics (ATXI) has gone into effect.
Reverse stock split: The reverse stock split was approved on July 25, 2022, by stockholders representing approximately 73% of the voting power of the outstanding voting stock of the company with authorization to determine the final ratio having been granted to the company’s Board of Directors. Avenue’s common stock will continue to trade on the Nasdaq Capital Market under the symbol “ATXI” following the reverse stock split, with a new CUSIP number of 05360L304.
Outstanding shares: After the effectiveness of the reverse stock split, we expect that the number of outstanding shares of common stock will be reduced from approximately 22.7 million to approximately 1.5 million, subject to adjustment to give effect to the treatment of any fractional shares that stockholders would have received in the reverse stock split. And no fractional shares will be issued in connection with the reverse stock split and stockholders who would otherwise be entitled to a fractional share will receive a proportional cash payment.
Why: The reverse stock split is primarily intended to bring the Company into compliance with Nasdaq’s $1.00 per share minimum bid price requirement for continued listing. The company is simultaneously effecting a reduction in the number of authorized shares of common stock from 50 million to 20 million.