Bionano Genomics, Inc. (NASDAQ: BNGO) recently announced a reverse stock split of its issued and outstanding common stock at a ratio of 1-for-60, which will be effective as of 5 p.m. ET on January 24, 2025. The company's common stock will begin trading on a split-adjusted basis commencing upon market open on January 27, 2025.
This decision came after the company's special meeting of stockholders held on January 15, 2025, where the stockholders voted to approve a proposal authorizing the board of directors to effect a reverse stock split at a ratio between 1-for-25 and 1-for-75, inclusive. Ultimately, the board of directors approved a 1-for-60 reverse stock split.
As a result of the reverse split, each 60 shares of the company’s issued and outstanding common stock will be automatically combined and converted into one issued and outstanding share of common stock, par value $0.0001 per share. The company’s common stock will trade under a new CUSIP number, 09075F404, effective January 27, 2025, and will remain listed on the NASDAQ Capital Market under the symbol "BNGO."
The reverse stock split will impact all holders of the company’s common stock proportionally and will not impact any stockholder’s percentage ownership of the company common stock (except to the extent the reverse stock split results in any stockholder owning only a fractional share).
In addition, the reverse stock split will reduce the number of shares of common stock issuable upon the conversion of the company’s outstanding convertible debentures and the exercise or vesting of its outstanding stock options, restricted stock units, and warrants in proportion to the ratio of the reverse stock split. This will cause a proportionate increase in the conversion and exercise prices of such convertible debentures, stock options, restricted stock units, and warrants.
It is worth noting that no fractional shares of common stock will be issued as a result of the reverse stock split. Stockholders of record who would otherwise be entitled to receive a fractional share will receive a cash payment in lieu thereof. Bionano has chosen its transfer agent, Equiniti Trust Company, LLC, to act as exchange agent for the reverse stock split. Stockholders owning shares via a bank, broker, or other nominee will have their positions automatically adjusted to reflect the reverse stock split and will not be required to take further action in connection with the reverse stock split.
The company's definitive proxy statement filed with the Securities and Exchange Commission on December 5, 2024, contains additional information concerning the reverse stock split. Following these announcements, the company's shares moved -20.2%, and are now trading at a price of $5.82. Check out the company's full 8-K submission here.
