Scienture Holdings (NASDAQ: SCNX) shares fell 10.3% Friday to $0.1588, extending their two-session decline to 38.9%, with a 1-for-25 reverse stock split set for Monday and only six scheduled trading sessions remaining through the company’s Oct. 12 deadline to regain Nasdaq minimum bid-price compliance, versus the exchange’s standard minimum 10-business-day requirement.
Scienture said its common stock will begin trading on a split-adjusted basis on the Nasdaq Capital Market under the same ticker symbol on Oct. 5.
Every 25 outstanding shares will automatically convert into one share, while the par value and total number of authorized common shares will remain unchanged.
Six Sessions Remain in Scienture’s Second Compliance Period
The split takes effect amid Scienture’s second Nasdaq compliance period. Nasdaq granted the company an additional 180-day period in April after it failed to regain bid-price compliance during its initial period.
The second period ends Oct. 12.
Nasdaq generally requires a closing bid price of $1 or more for at least 10 consecutive business days to regain compliance, although exchange staff may require a longer period.
With split-adjusted trading beginning Oct. 5, six scheduled regular sessions remain through the deadline, four fewer than Nasdaq’s standard 10-business-day minimum.
If Scienture does not regain compliance by the end of the second period, Nasdaq rules call for a Staff Delisting Determination. A timely request for a hearing would not stay the trading suspension while the appeal is pending.
At Friday’s $0.1588 closing price, the 1-for-25 ratio would mechanically translate to approximately $3.97 per share after the split, before subsequent trading.
A reverse split proportionally reduces the share count while increasing the per-share price and does not itself change a stockholder’s proportional equity interest, except for adjustments involving fractional shares.
Scienture expects the transaction to reduce its issued and outstanding common shares from 41,064,146 to approximately 1,642,565.
The company tied the split to two corporate objectives: addressing Nasdaq’s minimum bid-price requirement and increasing the pool of common shares available for potential future issuance.
Scienture has 100 million authorized common shares. Based on its disclosed share counts, the difference between authorized and outstanding shares would increase from about 58.94 million before the split to roughly 98.36 million afterward because the authorized-share ceiling will not be reduced.
In addition, outstanding equity awards, convertible preferred stock, and warrants will be adjusted proportionately for the new share ratio.
Holders who would otherwise receive a fractional common share will receive cash instead because Scienture will not issue fractional shares in the split.
