Elevai Labs Inc. (NASDAQ: ELAB) has announced a 1-for-200 reverse stock split of its common stock, effective at midnight on November 27, 2024. The purpose of this initiative is to meet NASDAQ's minimum bid price requirement of $1.00 per share under listing rule 5550(a)(2) and maintain its presence on the NASDAQ Capital Market.
The reverse stock split means that every 200 shares of issued and outstanding common stock will be consolidated into one share. Shareholders entitled to fractional shares will receive one full share for each fractional portion. Consequently, outstanding stock awards, options, and the equity incentive plan have been adjusted proportionally to reflect the new share structure.
Post-reverse stock split, there will be approximately 3.07 million shares of common stock issued and outstanding. The reverse stock split does not impact the overall value of shareholder equity; it only reduces the number of shares outstanding while proportionally adjusting the share price.
Graydon Bensler, Chief Executive Officer of Elevai, stated, "The reverse stock split is a required measure to preserve Elevai’s NASDAQ listing and set the stage for our continued progress in innovation and shareholder value creation. We are optimistic about the future and committed to executing our growth strategy."
Elevai Labs Inc. specializes in medical aesthetics and biopharmaceutical drug development, focusing on innovations for skin aesthetics and treatments tied to obesity and metabolic health. The company operates a diverse portfolio of three wholly owned subsidiaries across the medical aesthetics and biopharmaceutical sectors: Elevai Skincare Inc., Elevai Biosciences Inc., and Elevai Research Inc. Today the company's shares have moved -5.4% to a price of $2.37. Check out the company's full 8-K submission here.
