Following Stockholder Approval, BIO-Key Announces 1-For-18 Reverse Stock Split To Regain Compliance With Nasdaq Minimum Bid Price Requirement
Portfolio Pulse from Benzinga Newsdesk
BIO-key International, Inc. (NASDAQ:BKYI) has announced a 1-for-18 reverse stock split effective December 21, 2023, following stockholder approval. The reverse split aims to help the company regain compliance with Nasdaq's minimum bid price requirement. Prior to the split, BIO-key had approximately 16.9 million shares outstanding, which will be reduced to approximately 941,000 shares post-split. CEO Michael DePasquale emphasized the importance of Nasdaq listing for stockholder and corporate value, and the reverse split is seen as a step towards maintaining compliance and supporting the company's growth and profitability goals.
December 19, 2023 | 1:00 pm
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BIO-key International, Inc. has implemented a 1-for-18 reverse stock split to comply with Nasdaq's minimum bid price rule, significantly reducing the number of shares outstanding.
The reverse stock split is a direct action taken by BIO-key to address compliance issues with Nasdaq's listing requirements. This move is likely to increase the per-share price in the short term, as the number of shares outstanding will decrease substantially. However, it is important to note that while the stock price may increase due to the reduced number of shares, the company's market capitalization remains the same. The reverse split is often viewed as a positive step towards stabilizing a company's stock and can be seen as a commitment to maintaining listing standards and improving investor perception.
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