Mydecine Innovations (NEO: MYCO) is the latest firm to announce a reverse stock split amid a recent trend amongst small cap names. The company last night indicated that its board of directors had voted in favour of such a move, with shareholder approval not being required.
The consolidation will see the company reduce its outstanding share count on a one for fifty basis. Plainly, for every 50 pre-consolidation shares held by an investor, the shareholder will receive one post-consolidation share.
As a result of the consolidation, the firms outstanding share count is set to be reduced from 268.5 million to just 5.4 million. Outstanding warrants, options, and other securities will also see their conversion price adjusted accordingly. Fractional shares are not to be issued under the consolidation.
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No reasoning for the reverse split was provided by the company. The consolidation is anticipated to be effective as of April 20, 2022.
The consolidation follows the firm reporting its financial results for fiscal year 2021 on March 31. The company reported a net loss of $28.9 million for the full fiscal year, and a cash position of just $1.5 million. The same day, the firm announced it had managed to raise $0.3 million via the issuance of 3.5 million common shares at $0.0945 per share.
Mydecine Innovations last traded at $0.05 on the Neo.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
