Multiplan Corporation's reverse stock split has become effective as of September 20, 2024, with each share of common stock being reclassified into one fortieth of a share. This move has the specific goal of increasing the per share trading price of Multiplan's common stock in order to meet the New York Stock Exchange's (NYSE) price criteria for continued listing.
As a result of the reverse stock split, proportional adjustments will also be made to various financial aspects. This includes a reduction in the number of shares underlying outstanding warrants and awards, as well as a decrease in the number of shares available for issuance under the company’s incentive plans. Additionally, the number of shares issuable upon conversion of the company’s outstanding convertible senior pik toggle notes due 2027 will be lowered.
It's important to note that no fractional shares of common stock will be issued due to the reverse stock split. Stockholders entitled to a fractional share of common stock will instead receive a cash payment equal to their pro rata share of the net proceeds from the sale of the fractional shares.
With the reverse stock split becoming effective, Multiplan's common stock will begin trading on a split-adjusted basis on September 23, 2024, under the existing symbol (MPLN). This move comes as Multiplan, a leading provider of technology and data-enabled cost management, payment, and revenue integrity solutions to the U.S. health care industry, continues its commitment to bending the cost curve in healthcare and delivering transparency, fairness, and affordability to the U.S. healthcare system. The market has reacted to these announcements by moving the company's shares 15.6% to a price of $8.7. For the full picture, make sure to review MultiPlan's 8-K report.
