Aclarion, a healthcare technology company specializing in chronic low back pain diagnostics, announced a strategic 1-for-370 reverse stock split aimed at maintaining its Nasdaq listing and improving its stock market position. The reverse stock split, approved by stockholders on December 31, 2024, will become effective on January 29, 2025, before market open.
The primary motivation behind this corporate action is to meet Nasdaq's continued listing standards, specifically the Minimum Bid Price Rule requiring shares to trade above $1.00. By consolidating every 370 existing shares into a single share, Aclarion expects to increase its per-share stock price and ensure continued trading on the Nasdaq exchange.
Under the terms of the reverse stock split, stockholders will see their share count dramatically reduced. The company's total outstanding shares are projected to decrease from approximately 185 million to around 500,000. Importantly, no fractional shares will be issued, with smaller shareholdings being rounded up to the nearest whole share.
The split will comprehensively apply to all outstanding securities, including warrants, stock options, and restricted stock units. Conversion and exercise prices will be proportionately adjusted to maintain the economic equivalence of these instruments.
Shareholders holding shares through brokerage accounts will experience automatic adjustments reflecting the 1-for-370 ratio. Those with physical stock certificates will receive detailed instructions from Vstock Transfer, the company's transfer agent, regarding share exchange procedures.
This strategic financial maneuver underscores Aclarion's commitment to maintaining its public market presence while potentially improving investor perception. By addressing Nasdaq listing requirements proactively, the company signals its intention to remain a viable public entity in the competitive healthcare technology sector.
The reverse stock split represents a common financial strategy used by companies to boost stock price and meet exchange listing requirements, though it does not inherently change the company's underlying financial value or market capitalization.
