Nexalin Sets 1-for-30 Reverse Split to Regain Nasdaq Compliance
NXL is trading near its 52-week low of $0.295 (19% below the low).
Summary
Nexalin's board approved a 1-for-30 reverse stock split effective August 28, with trading on a split-adjusted basis starting August 31. The move aims to lift the stock above Nasdaq's $1 minimum bid requirement after the company received delisting notices. Shareholders had already authorized the split in June, and the company has been raising capital through equity lines and notes to fund operations. The reverse split will reduce the share count and mechanically raise the price, but it does not change the company's underlying financial condition, which includes a going concern warning and dwindling cash. The new CUSIP and automatic adjustment for street-name holders mean no action is required from most investors.
At the time of this announcement, NXL was trading at $0.24 on NASDAQ in the Life Sciences sector, with a market capitalization of approximately $7.3M. The 52-week trading range was $0.30 to $2.00. This news item was assessed with neutral market sentiment and an importance score of 7 out of 10. Source: GlobeNewswire.