Bluejay Diagnostics Announces Reverse Stock Split

Rhea-AI Summary

Bluejay Diagnostics announced a 1-for-8 reverse stock split effective June 20, 2024. This will reduce outstanding shares from approximately 4.5 million to around 564,000, with no change in par value. Fractional shares will be compensated in cash. The stock will trade under the same symbol, BJDX, but with a new CUSIP number. The reverse split affects all shareholders uniformly, preserving their percentage ownership except for fractional share adjustments. The transfer agent for this process is Continental Stock Transfer & Trust Company. Bluejay focuses on rapid diagnostics to improve patient outcomes in critical care settings.

Positive

• Reverse stock split reduces outstanding shares from 4.5 million to around 564,000, potentially increasing stock value.
• Stock will continue trading under the existing ticker BJDX, maintaining brand recognition.
• No change in the par value of the shares, preserving the stock's fundamental value.
• Uniform impact on all shareholders, maintaining proportional ownership.
• Company focuses on innovative medical diagnostics, particularly the Symphony System for rapid, near-patient testing.

Negative

• Reverse stock split may indicate underlying financial distress or an attempt to meet listing requirements.
• Fractional shares will be compensated in cash, which might not be favorable for all shareholders.
• New CUSIP number could require administrative adjustments for shareholders and brokers.
• Potential perception of instability due to the reverse stock split, affecting investor confidence.

ACTON, Mass., June 17, 2024 (GLOBE NEWSWIRE) -- Bluejay Diagnostics, Inc. (NASDAQ: BJDX) (“Bluejay” or the “Company”), a medical technology company developing rapid diagnostics on its Symphony platform to improve patient outcomes in critical care settings, today announced that the Company’s Board of Directors has approved a reverse stock split of its shares of common stock at a ratio of 1-for-8 (the “Reverse Stock Split”). The Reverse Stock Split will become effective at 12:01 a.m. Eastern Time on June 20, 2024, and the Company’s common stock will open for trading on The Nasdaq Capital Market on a post-split basis on June 20, 2024 under the Company’s existing trading symbol, “BJDX.” At such time, the Company’s common stock will also commence trading with a new CUSIP number, 095633400.

At the effective time of the reverse stock split, every eight (8) shares of Bluejay common stock issued and outstanding will be combined into one (1) share of common stock issued and outstanding, with no change to the par value of $0.0001 per share. This will reduce the Company’s outstanding common stock from approximately 4,511,756 shares to approximately 563,969 shares. No fractional shares of common stock will be issued as a result of the reverse stock split and instead holders of Bluejay common stock will receive a cash payment in lieu of fractional shares to which they would otherwise be entitled. The shares underlying the Company’s outstanding equity awards and warrants will also be adjusted accordingly. The reverse stock split affects all stockholders uniformly and will not alter any stockholder’s percentage interest in the Company’s common stock, except for adjustments that may result from the treatment of fractional shares.

The Company has retained its transfer agent, Continental Stock Transfer & Trust Company (“Continental”), to act as its exchange agent for the reverse stock split. Stockholders with shares held in certificate form will receive from Continental instructions regarding the exchange of their certificates. Stockholders that hold shares in book-entry form or hold their shares in brokerage accounts are not required to take any action and will see the impact of the reverse stock split reflected in their accounts, subject to brokers’ particular processes. Beneficial holders of Bluejay common stock are encouraged to contact their bank, broker, custodian or other nominee with questions regarding procedures for processing the reverse stock split.

About Bluejay Diagnostics:

Bluejay Diagnostics, Inc. is a medical diagnostics company focused on improving patient outcomes using its Symphony System, a cost-effective, rapid, near-patient testing system for triage and monitoring of disease progression. Bluejay’s first product candidate, an IL-6 Test for sepsis triage, is designed to provide accurate, reliable results in approximately 20 minutes from ‘sample-to-result’ to help medical professionals make earlier and better triage/treatment decisions. More information is available at www.bluejaydx.com.

Forward-Looking Statements:

This press release contains statements that the Company believes are “forward-looking statements” within the meaning of the Private Litigation Reform Act. Forward-looking statements in this press release include, without limitation, the expected nature and timing of the Company’s planned FDA submission and related plans for clinical study amendment, whether the Company’s cash position will be sufficient to fund operations needed to achieve regulatory approval and initial commercialization of the Symphony IL-6 Test, whether such regulatory approval will actually occur and the continuation of the Company as a going concern. Forward-looking statements may be identified by words such as “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “plans,” “projects,” “seeks,” “should,” “suggest,” “will,” and similar expressions. The Company has based these forward-looking statements on its current expectations and projections about future events, nevertheless, actual results or events could differ materially from the plans, intentions and expectations disclosed in, or implied by, the forward-looking statements the Company makes. These statements are only predictions and involve known and unknown risks, uncertainties, and other factors, including those discussed under item 1A. “Risk Factors” in our most recently filed Form 10-K filed with the Securities and Exchange Commission, as updated by the Company’s subsequent Quarterly Report on Form 10-Q. You should not place undue reliance on these forward-looking statements, as they are subject to risks and uncertainties, and actual results and performance in future periods may not occur or may be materially different from any future results or performance suggested by the forward-looking statements in this release. This press release speaks as of the date indicated above. The Company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events, or otherwise. The Company expressly disclaims any obligation to update or revise any forward-looking statements found herein to reflect any future changes in the Company’s expectations of results or any future change in events.

Investor Contact:
Neil Dey
Bluejay Diagnostics, Inc.
neil.dey@bluejaydx.com
978-631-0310

FAQ

What is the effective date of Bluejay Diagnostics' reverse stock split?

The reverse stock split will become effective at 12:01 a.m. Eastern Time on June 20, 2024.

What is the ratio of Bluejay Diagnostics' reverse stock split?

The reverse stock split ratio is 1-for-8.

How many shares of Bluejay Diagnostics will be outstanding after the reverse stock split?

Approximately 564,000 shares will be outstanding after the reverse stock split.

Will Bluejay Diagnostics issue fractional shares in the reverse stock split?

No, Bluejay Diagnostics will not issue fractional shares. Instead, holders will receive a cash payment in lieu of fractional shares.

What is the new CUSIP number for Bluejay Diagnostics post-reverse stock split?

The new CUSIP number for Bluejay Diagnostics post-reverse stock split is 095633400.

Will the reverse stock split change the par value of Bluejay Diagnostics' shares?

No, the par value of $0.0001 per share remains unchanged.