Sintx Technologies (NASDAQ: SINT) stock plummeted during pre-market trading Friday after the company announced a 1-for-200 reverse stock split.
Sintx Technologies (SINT) has disclosed a strategic move to enact a 1-for-200 reverse stock split of its common stock, scheduled to take effect on May 28, 2024, at 12:01 AM Eastern Time. Following the split, the company expects its common stock to commence trading on a split-adjusted basis under the current trading symbol “SINT” once the markets open on the same day.
The Objective of the Reverse Stock Split
The primary objective of the reverse stock split is to align Sintx Technologies with the Nasdaq’s listing standards, ensuring continued listing on the exchange. Following the reverse split, the new CUSIP number for the company’s shares of common stock will be 829392 703.
Impact and Adjustments
With the implementation of the reverse stock split, the company will consolidate every 200 issued and outstanding shares of common stock into one new share of common stock. This reclassification will trigger proportionate adjustments to the conversion and exercise prices, as well as the number of shares underlying the Company’s outstanding warrants, preferred stock, equity awards, and the number of shares reserved under the Company’s equity incentive plan. Notably, the reverse stock split will not affect the number of common stock shares authorized or the par value of the common stock.
The reverse stock split will uniformly affect all stockholders, maintaining their percentage interests in the company, except for fractional share ownership. Any fractional shares resulting from the reverse stock split will be rounded up to the nearest whole share, with no cash being distributed in exchange for fractional shares.
Upon completion, the reverse stock split will substantially reduce the number of issued and outstanding shares of the Company’s common stock from approximately 123 million to approximately 0.6 million.
Equiniti Trust Company LLC, the Company’s transfer agent, will issue transaction statements to each stockholder, indicating the adjusted number of shares held post-reverse stock split. Stockholders holding shares through brokers, banks, trusts, or other nominees will have their positions automatically adjusted, with no action required on their part.
Sintx Technologies (NASDAQ: SINT) Stock Reaction
As of 09:16 a.m. (Eastern Time) Friday, SINT stock traded at $0.0752, marking a 6.12% decrease compared to the previous trading session.
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