ZyVersa Therapeutics, Inc. Announces 1-For-35 Reverse Stock Split And Increase In Authorized Shares Of Common Stock From 110M To 250M
Portfolio Pulse from Benzinga Newsdesk
ZyVersa Therapeutics, Inc. (NASDAQ:ZVSA) has announced a 1-for-35 reverse stock split and an increase in authorized shares from 110M to 250M, effective December 4, 2023. This move aims to comply with Nasdaq's $1.00 minimum bid price requirement for continued listing. Adjustments will be made to equity awards, convertible securities, and warrants. No fractional shares will be issued, and stockholders need not take action as adjustments will be automatic.
November 30, 2023 | 4:31 pm
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ZyVersa Therapeutics, Inc. is undergoing a 1-for-35 reverse stock split to boost its share price and comply with Nasdaq's minimum bid price rule. The increase in authorized shares may dilute current ownership but could provide capital for growth.
Reverse stock splits often aim to boost the share price to meet exchange listing requirements, which is the case with ZVSA. While this may initially increase the share price, the impact on the market value is neutral as the company's overall equity value doesn't change. The increase in authorized shares indicates potential future dilution, which could be negative, but it also provides the company with the ability to raise capital, which could be positive. The net short-term impact is likely neutral.
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