23andMe Holding Co. (NASDAQ: ME) has announced a 1-for-20 reverse stock split of the company's class A and class B common stock, effective as of 12:01 a.m. EST on October 16, 2024. The company's stockholders voted to approve an amendment to the company's certificate of incorporation to combine outstanding shares of class A common stock and class B common stock into a lesser number of outstanding shares. The board approved a final reverse stock split ratio of 1-for-20, reducing the issued and outstanding shares of common stock from approximately 350,292,546 shares of class A common stock and 166,443,192 shares of class B common stock to approximately 17,514,628 and 8,322,160 shares, respectively.
As a result of the reverse stock split, each 20 shares of the company's class A and class B common stock issued and outstanding immediately prior to the effective time will be automatically combined into one share of class A common stock and class B common stock, respectively. The number of shares of class A common stock subject to the company's outstanding restricted stock unit and stock option awards, as well as the relevant exercise price per share with respect to such outstanding stock option awards, will be proportionately adjusted to reflect the reverse stock split. The number of class A common stock shares authorized and available for issuance under the company's incentive equity plan and employee stock purchase plan will also be reduced to reflect the reverse stock split, using the same 1-for-20 split ratio.
Upon the effective time, each certificate representing shares of the company's common stock immediately prior to the reverse stock split will be deemed to represent the number of full shares of common stock resulting from the reverse stock split. The company's class A common stock will begin trading on the NASDAQ Capital Market on a split-adjusted basis when the market opens on October 16, 2024, under a new CUSIP number, 90138Q306.
The reverse stock split will affect all stockholders proportionately, and the company will not issue any fractional shares of its class A or class B common stock as a result of the reverse stock split. Instead, any fractional shares will be rounded up to the next whole number.
As a result of these announcements, the company's shares have moved -7.4% on the market, and are now trading at a price of $5.0. For more information, read the company's full 8-K submission here.
