Aditxt, Inc. (NASDAQ: ADTX) Announces 1-for-40 Reverse Stock Split Effective at the Open of Trading on October 2, 2024

Rhea-AI Summary

Aditxt, Inc. (NASDAQ: ADTX) has announced a 1-for-40 reverse stock split effective at the open of trading on October 2, 2024. The company's common stock will continue to trade under the symbol ADTX on the Nasdaq Capital Market. This decision was approved by stockholders on August 7, 2024, with the final ratio determined by the board of directors.

Key points:

• New CUSIP number: 007025703
• Every 40 shares will be exchanged for 1 share
• Fractional shares will be rounded up
• Post-split: approximately 244,667 shares outstanding

The primary goal of this reverse split is to bring Aditxt into compliance with Nasdaq's minimum bid price requirement. More information can be found in the company's definitive proxy statement filed on July 5, 2024.

Positive

• Potential compliance with Nasdaq's minimum bid price requirement
• Stockholder approval for the reverse stock split

Negative

• Significant reduction in the number of outstanding shares
• Possible indication of financial difficulties or declining stock value

Insights

Financial Analyst

The 1-for-40 reverse stock split announced by Aditxt is a significant move aimed at maintaining Nasdaq compliance. This action will reduce the number of outstanding shares from approximately 9.79 million to about 244,667, potentially boosting the stock price by a factor of 40. However, it's important to note that this doesn't change the company's underlying value or market capitalization.

The primary goal is to meet Nasdaq's $1 minimum bid price requirement, which is essential for continued listing. While this may temporarily inflate the stock price, it doesn't address fundamental business challenges or improve financial performance. Investors should be cautious, as companies resorting to reverse splits often struggle with declining share prices and may face delisting risks in the future if underlying issues aren't resolved.

The effectiveness of this strategy in maintaining long-term compliance and attracting institutional investors remains to be seen. Shareholders should closely monitor the company's financial performance and any potential dilution following the split.

MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)-- Aditxt, Inc. (NASDAQ: ADTX) (“Aditxt” or the “Company”), an innovation platform dedicated to accelerating promising health innovations, announced today that it will effect a 1-for-40 reverse split of its common stock. Commencing with the opening of trading on the Nasdaq Capital Market on October 2, 2024, the Company’s common stock will trade on a post-split basis under the same symbol ADTX. The reverse stock split was approved by the Company’s stockholders at the annual meeting held on August 7, 2024, with the final ratio determined by the Company’s board of directors.

As a result of the reverse stock split, the CUSIP number for the Company’s common stock will now be 007025703. As a result of the reverse stock split, every 40 shares of issued and outstanding common stock will be exchanged for 1 share of common stock, with any fractional shares being rounded up to the next higher whole share. Immediately after the reverse stock split becomes effective, the Company will have approximately 244,667 shares of common stock issued and outstanding.

The reverse stock split is primarily intended to bring the Company into compliance with Nasdaq’s minimum bid price requirement.

Additional information concerning the reverse stock split can be found in Aditxt’s definitive proxy statement filed with the Securities and Exchange Commission on July 5, 2024, as amended.

About Aditxt, Inc.

Aditxt, Inc.® is an innovation platform dedicated to accelerating promising health innovations. Aditxt’s ecosystem of research institutions, industry partners, and shareholders collaboratively drives their mission to "Make Promising Innovations Possible Together." The innovation platform is the cornerstone of Aditxt’s strategy, where multiple disciplines drive disruptive growth and address significant societal challenges. Aditxt operates a unique model that democratizes innovation, ensures every stakeholder’s voice is heard and valued, and empowers collective progress.

Aditxt currently operates two programs focused on immune health and precision health. The Company plans to introduce two additional programs dedicated to public health and women’s health. For these, Aditxt has entered into an Arrangement Agreement with Appili Therapeutics, Inc. (“Appili”) (TSX: APLI; OTCPink: APLIF), which focuses on infectious diseases, and a Merger Agreement with Evofem Biosciences, Inc. (“Evofem”) (OTCQB: EVFM). Each program will be designed to function autonomously while collectively advancing Aditxt’s mission of discovering, developing, and deploying innovative health solutions to tackle some of the most urgent health challenges. The closing of each of the transactions with Appili and Evofem is subject to several conditions, including but not limited to approval of the transactions by the respective target shareholders and Aditxt raising sufficient capital to fund its obligations at closing. No assurance can be provided that all of the conditions to closing will be obtained or satisfied or that either of the transactions will ultimately close.

For more information, www.aditxt.com.

Follow us on:
LinkedIn: https://www.linkedin.com/company/aditxt
Facebook: https://www.facebook.com/aditxtplatform/

Forward-Looking Statements

Certain statements in this press release constitute “forward-looking statements” within the meaning of federal securities laws. Forward-looking statements include statements regarding the Company’s intentions, beliefs, projections, outlook, analyses, or current expectations concerning, among other things, the Company’s ongoing and planned product and business development; the Company’s ability to finance and execute its strategic M&A initiatives; the Company’s ability to obtain the necessary funding and partner to commence clinical trials; the Company’s intellectual property position; the Company’s ability to develop commercial functions; expectations regarding product launch and revenue; the Company’s results of operations, cash needs, spending, financial condition, liquidity, prospects, growth, and strategies; the Company’s ability to raise additional capital; the industry in which the Company operates; and the trends that may affect the industry or the Company. Forward-looking statements are not guarantees of future performance, and actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors, as well as market and other conditions and those risks more fully discussed in the section titled “Risk Factors” in Aditxt’s most recent Annual Report on Form 10-K, as well as discussions of potential risks, uncertainties, and other important factors in the Company’s other filings with the Securities and Exchange Commission. All such statements speak only as of the date made, and the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240927965823/en/

Aditxt, Inc.

Mary O’Brien

Mobrien@aditxt.com

516-753-9933

Source: Aditxt, Inc.

FAQ

When will Aditxt's (ADTX) 1-for-40 reverse stock split take effect?

Aditxt's (ADTX) 1-for-40 reverse stock split will take effect at the open of trading on October 2, 2024.

What is the new CUSIP number for Aditxt (ADTX) after the reverse stock split?

The new CUSIP number for Aditxt (ADTX) after the reverse stock split is 007025703.

How many shares of Aditxt (ADTX) will be outstanding after the reverse stock split?

After the reverse stock split, Aditxt (ADTX) will have approximately 244,667 shares of common stock issued and outstanding.

What is the main reason for Aditxt (ADTX) implementing the reverse stock split?

The primary reason for Aditxt (ADTX) implementing the reverse stock split is to bring the company into compliance with Nasdaq's minimum bid price requirement.