BioVie Inc. Announces Reverse Stock Split

Rhea-AI Summary

BioVie Inc. (NASDAQ: BIVI) has announced the implementation of a 1-for-10 reverse stock split of its issued and outstanding Class A common stock, effective August 6, 2024. The company's shares began trading on a split-adjusted basis on the same day, maintaining its listing on The Nasdaq Capital Market under the symbol "BIVI". This action follows the approval by BioVie stockholders at a Special Meeting held on July 29, 2024. The reverse split aims to adjust the company's share structure, potentially impacting its market capitalization and share price. Investors can find detailed information about the Special Meeting in the company's definitive proxy statement filed with the SEC on June 17, 2024, available on the SEC website and BioVie's corporate website.

Positive

• Maintained listing on The Nasdaq Capital Market
• Stockholder approval obtained for the reverse stock split

Negative

• Implementation of 1-for-10 reverse stock split, potentially indicating financial challenges
• Possible shareholder dilution due to the reverse split

Insights

Financial Analyst

BioVie's 1-for-10 reverse stock split is a strategic move aimed at boosting its share price and maintaining Nasdaq listing compliance. While this doesn't change the company's underlying value, it could improve investor perception and attract institutional investors who often have minimum share price requirements.

However, reverse splits can be seen as a red flag, potentially signaling financial distress. It's important to examine BioVie's fundamentals, cash position and pipeline progress to assess its long-term viability. The reduced share count might also limit liquidity, potentially increasing volatility.

Investors should monitor post-split trading patterns and any changes in institutional ownership. The effectiveness of this move will largely depend on BioVie's ability to deliver positive operational and clinical results in the near future.

Market Research Analyst

This reverse split reflects broader challenges in the biotech sector, where many companies are struggling with depressed valuations. It's a common tactic to regain Nasdaq compliance, but its success varies widely. Historically, companies resorting to reverse splits often underperform the market in the following year.

BioVie's ability to buck this trend will depend on upcoming catalysts, particularly in its clinical pipeline. Investors should watch for any upcoming data readouts or regulatory milestones that could drive genuine value creation. The market's reaction in the coming weeks will be telling - sustained price stability could indicate improved investor confidence, while rapid decline might suggest deeper underlying issues.

This move also concentrates ownership, potentially making the stock more susceptible to price swings on news or large trades. Retail investors should be particularly cautious of increased volatility.

Shares of BioVie common stock began trading on split-adjusted basis on August 6, 2024

CARSON CITY, Nev., Aug. 06, 2024 (GLOBE NEWSWIRE) -- BioVie Inc. (NASDAQ: BIVI) (“BioVie” or the “Company”) today announced that the Company's reverse stock split of its issued and outstanding Class A common stock (“Common Stock”), at an exchange ratio of 1-for-10, is now effective. The Company’s Common Stock began trading on a split-adjusted basis and will remain listed on The Nasdaq Capital Market under the symbol “BIVI”. The new CUSIP number for the Company’s Common Stock following the reverse stock split is 09074F405.

The effectuation of the reverse stock split followed the approval of the BioVie stockholders at a Special Meeting of Stockholders (the “Special Meeting”) on July 29, 2024. The Special Meeting, is described in detail in the Company’s definitive proxy statement on Schedule 14A relating to the Special Meeting filed with the Securities and Exchange Commission (the “SEC”) on June 17, 2024. Stockholders may obtain a free copy of the proxy statement and other documents filed by BioVie with the SEC at http://www.sec.gov. The proxy statement is also available on the Company’s corporate website.

About BioVie Inc.

BioVie Inc. (NASDAQ: BIVI) is a clinical-stage company developing innovative drug therapies for the treatment of neurological and neurodegenerative disorders and advanced liver disease. In neurodegenerative disease, the Company’s drug candidate bezisterim inhibits inflammatory activation of ERK and NFkB (e.g., TNF signaling) that leads to neuroinflammation and insulin resistance, but not their homeostatic functions (e.g., insulin signaling and neuron growth and survival). Both are drivers of AD and PD. In liver disease, the Company’s Orphan drug candidate BIV201 (continuous infusion terlipressin), with U.S. Food and Drug Administration (“FDA”) Fast Track status, is being evaluated and discussed with guidance received from the FDA regarding the design of Phase 3 clinical testing of BIV201 for the treatment of ascites due to chronic liver cirrhosis. The active agent is approved in the U.S. and in about 40 countries for related complications of advanced liver cirrhosis. For more information, visit www.bioviepharma.com.

Forward-Looking Statements

This press release contains forward-looking statements, which may be identified by words such as "expect," "look forward to," "anticipate" "intend," "plan," "believe," "seek," "estimate," "will," "project" or words of similar meaning. Although BioVie Inc. believes such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. Actual results may vary materially from those expressed or implied by the statements herein due to the Company's ability to successfully raise sufficient capital on reasonable terms or at all, available cash on hand and contractual and statutory limitations that could impair our ability to pay future dividends, our ability to complete our pre-clinical or clinical studies and to obtain approval for our product candidates, our ability to successfully defend potential future litigation, changes in local or national economic conditions as well as various additional risks, many of which are now unknown and generally out of the Company's control, and which are detailed from time to time in reports filed by the Company with the SEC, including quarterly reports on Form 10-Q, reports on Form 8-K and annual reports on Form 10-K. BioVie Inc. does not undertake any duty to update any statements contained herein (including any forward-looking statements), except as required by law.

For Investor Relations Inquiries:

Contact:
Bruce Mackle
Managing Director
LifeSci Advisors, LLC
bmackle@lifesciadvisors.com

For Media Inquires
Melyssa Weible
Managing Partner, Elixir Health Public Relations
Ph: +1 201-723-5705
mweible@elixirhealthpr.com

FAQ

What is the new stock split ratio for BioVie Inc. (BIVI)?

BioVie Inc. (BIVI) implemented a 1-for-10 reverse stock split, effective August 6, 2024.

When did BioVie's (BIVI) reverse stock split take effect?

BioVie's (BIVI) reverse stock split became effective on August 6, 2024, with shares beginning to trade on a split-adjusted basis on the same day.

Has BioVie's (BIVI) stock symbol changed after the reverse split?

No, BioVie's stock symbol remains "BIVI" on The Nasdaq Capital Market after the reverse stock split.

What is the new CUSIP number for BioVie (BIVI) stock after the reverse split?

The new CUSIP number for BioVie (BIVI) stock following the reverse stock split is 09074F405.