- AquaBounty Technologies has approved a 1-for-20 reverse stock split effective October 16, 2023.
- The reverse stock split aims to bring the company into compliance with Nasdaq’s minimum bid price requirement.
- Post-split, the outstanding shares will be reduced from approximately 71.36 million to around 3.57 million.
- No fractional shares will be issued; stockholders entitled to fractional shares will receive a full share.
- The number of shares of common stock authorized to be issued will be reduced from 150 million to 75 million.
AquaBounty Technologies, Inc. (NASDAQ: AQB), a Massachusetts-based land aquaculture company specializing in technology to enhance productivity and sustainability, announced a 1-for-20 reverse stock split. The Board of Directors approved the split effective from 12:01 a.m., Eastern Time, on October 16, 2023. The move is part of the company’s strategy to comply with the minimum bid price requirement for continued listing on the Nasdaq Capital Market.
On October 12, 2023, the company’s stockholders approved the reverse stock split at a ratio ranging from 1-for-15 to 1-for-20. The Board of Directors was given the discretion to determine the final ratio, which they set at 1-for-20. The reverse stock split had to be effected no later than December 31, 2023.
The 1-for-20 reverse stock split will automatically convert 20 current shares of AquaBounty’s common stock into one new share. The stock will continue to trade on the Nasdaq Capital Market under the symbol “AQB,” albeit with a new CUSIP number of 03842K309. Following the split, the outstanding shares will be reduced from approximately 71.36 million to around 3.57 million. No fractional shares will be issued; stockholders who would otherwise receive a fractional share will be given a full share.
Adjustments and Authorized Shares
Proportional adjustments will be made to the exercise price and the number of shares issuable upon the exercise or conversion of the company’s outstanding stock options, restricted stock units, and other equity securities under AquaBounty’s equity incentive plans. Additionally, the number of shares of common stock authorized to be issued will be reduced from 150 million to 75 million.
Transfer Agent and Additional Information
Computershare Trust Company, N.A., AquaBounty’s transfer agent, will handle the exchange process for the reverse stock split. Stockholders holding pre-split shares will receive a letter of transmittal with instructions on how to surrender their certificates. Those with book-entry shares or who hold their shares through a broker will not need to take any action.
Image provided by AquaBounty Technologies