Heat Biologics (NASDAQ:HTBX) has announced details for a reverse stock split in order to keep shares of HTBX stock trading on the Nasdaq.
Here’s what investors need to know about the Heat Biologics reverse stock split.
- The vaccine company is moving forward with a reverse stock split to keep shares of HTBX stock complaint Nasdaq standards.
- The Nasdaq doesn’t allow shares that trade below $1 each and HTBX has had trouble staying above that price over the last year.
- This will have it combining seven shares of HTBX stock in a single share of the stock.
- This will reduce the total number of shares from roughly 159.8 million shares to approximately 22.8 million.
- The reverse stock split won’t allow for fractional shares of Heat Biologics.
- Instead, investors will receive cash compensation for any fractional shares they would own.
- Shares of HTBX stock will start trading on a post-split basis on Friday.
- Heat Biologics notes that another benefit of the reverse stock split is that it will increase the visibility of its shares.
- The reverse stock split was approved by investors in a shareholder meeting back in February.
- At that time, investors left it up to the Board of Directors to determine the details of the reverse stock split.
Jeff Wolf, CEO of Heat Biologics, said this about the news.
“Importantly, we remain in compliance with Nasdaq requirements and have important upcoming milestones related to our programs that we expect to announce soon, which we believe will further validate our strategy. It’s also important to note that we have a solid balance sheet with over $113 million of cash as of December 9, 2020.”
HTBX stock was down 7.9% as of Thursday morning.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.