AquaBounty today announced that its Board of Directors has approved a 1-for-20 reverse split of its common stock and an associated reduction in the number of shares of common stock the company is authorized to issue. With this action, AquaBounty expects its common stock to begin trading on a split-adjusted basis on the Nasdaq Capital Market as of the commencement of trading next Monday, October 16, 2023.
This is the latest action taken by the company after it was notified a year ago by Nasdaq Stock Market LLC that it did not meet the minimum bid price requirement for continued listing on the Nasdaq Capital Market.
Then, the closing bid price of AquaBounty's common stock had been below USD 1.00 a share for the previous 30 consecutive business days and it was given until May 1, 2023 to comply with the requirement. The following day, on May 2, the company obtained an extension granting it an additional 180 calendar days (until October 30, 2023) to re-comply with the requirement.
The shareholders of AquaBounty Technologies, Inc. approved yesterday, October 12, a reverse stock split of the company's common stock in a ratio of 1-for-15 to 1-for-20, inclusive. The company's Board of Directors will determine the exact ratio and the date of the reverse stock split at a later date, which will not be later than December 31, 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," said in a statement AquaBounty Board of Directors Chair and CEO, Sylvia Wulf. "The Board believes that this is the best direction going forward for the company and shareholders," she added.
The company explained in a release that the 1-for-20 reverse stock split will automatically convert 20 shares of the company's existing common stock into one new share of common stock. AquaBounty's common stock will continue to trade on the Nasdaq Capital Market under the symbol "AQB", but will trade under the new CUSIP number 03842K309.
Following the effectiveness of the reverse split, the number of common shares outstanding will be reduced from approximately 71.36 million to approximately 3.57 million, subject to adjustments to give effect to the treatment of any fractional shares that shareholders would have received.
In addition, AquaBounty has also advised that no fractional shares will be issued in connection with the reverse split, and that shareholders who would otherwise be entitled to a fractional share will receive a full share.
As a result of the reverse stock split, the number of shares of common stock authorized to be issued will be reduced from 150 million to 75 million.
AquaBounty Technologies, Inc. is a land-based fish farming expert raising Atlantic salmon to supply nearby markets. As a vertically integrated company from broodstock to grow out, it claims that its innovative land-based farms, combined with its expertise in genetic engineering, are the answer to the world's growing demand for high-quality seafood. The company is currently operating a grow-out farm located in Indiana, in the United States, and a broodstock and egg production farm located on Prince Edward Island, Canada. There is one more farm on the way being built in Pioneer, Ohio, U.S.
