Conversion Labs Reverse Splits Common Shares 1-for-5 in Preparation for Nasdaq Listing

Rhea-AI Summary

Conversion Labs (OTCQB: CVLB) announced a 1-for-5 reverse stock split effective October 14, 2020. This move is aimed at meeting NASDAQ listing requirements, necessitating a minimum share price of $4.00. Post-split, the stock will trade under the symbol 'CVLBD' for 20 business days before reverting back to 'CVLB.' The reverse split reduces outstanding shares from approximately 78.7 million to around 15.7 million. The company reported an annualized revenue run rate of $46.8 million, significantly up from $12.5 million in 2019, indicating strong growth in its telemedicine services.

Positive

• Reverse stock split aimed at meeting NASDAQ listing requirements.
• Annualized revenue run rate surged to $46.8 million, tripling from 2019's $12.5 million.

Negative

• No assurance of meeting all NASDAQ listing requirements.

NEW YORK, Oct. 14, 2020 (GLOBE NEWSWIRE) -- Conversion Labs, Inc. (OTCQB: CVLB), a direct-to-consumer telemedicine and wellness company, will effect a 1-for-5 reverse split of its common stock effective prior to the opening of the market today, Wednesday, October 14, 2020. 

The reverse stock split was implemented by the company in connection with its previously announced application to uplist the company's common stock to the NASDAQ Capital Market (NASDAQ). The reverse stock split is an action intended to fulfill the stock price requirements for official listing on NASDAQ, which requires that the company's common stock must be at $4.00 or higher at the time of listing. There can be no assurance that the company will satisfy other applicable requirements for listing its common stock on NASDAQ or that the company's application to uplist its common stock will be approved.

The stock will begin trading on a post-split basis under the symbol “CVLBD.” After 20 business days, the stock will return to trading under the symbol “CVLB.”

“This reverse split is another major step toward our common stock being traded on a major U.S. exchange,” stated Conversion Labs’ CEO, Justin Schreiber. “We believe a Nasdaq listing will help increase our corporate visibility and broaden awareness of our success in the financial community, particularly with institutional and retail investors. We also expect it to provide our investors with greater liquidity and enhance shareholder value.

“These benefits will be timely, as we expect to soon announce a number of new telemedicine products that will leverage our strong customer growth and the vast market opportunities that continue to emerge in telehealth.”

As a result of the split, every five shares of issued and outstanding common stock will be exchanged for one share of common stock. Each stockholder’s percentage ownership interest in Conversion Labs and proportional voting power will remain unchanged, and the rights and privileges as the holders of the common stock will be unaffected.

The reverse stock split will reduce the number of shares of issued and outstanding common stock from 78,659,427 pre-split to approximately 15,731,885 post-split. Proportional adjustments will be made to any outstanding warrants or options.

Over the last year, Conversion Labs has seen an acceleration in its operational and financial performance. The company recently reported its annualized revenue run rate hit $46.8 million, as compared to $12.5 million for all of 2019—a more than three-fold increase.

About Conversion Labs
Conversion Labs, Inc. is a telemedicine company with a portfolio of online direct-to-consumer brands. The company’s brands combine virtual medical treatment with prescription medications and unique over-the-counter products. Its network of licensed physicians offers telemedicine services and direct-to-consumer pharmacy to consumers across the U.S. To learn more, visit Conversionlabs.com.

Important Cautions Regarding Forward-Looking Statements
This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended, regarding, among other things our plans, strategies and prospects -- both business and financial. Although we believe that our plans, intentions and expectations reflected in or suggested by these forward-looking statements are reasonable, we cannot assure you that we will achieve or realize these plans, intentions or expectations. Forward-looking statements are inherently subject to risks, uncertainties and assumptions. Many of the forward-looking statements contained in this news release may be identified by the use of forward-looking words such as "believe," "expect," "anticipate," "should," "planned," "will," "may," "intend," "estimated," and "potential," among others. Important factors that could cause actual results to differ materially from the forward-looking statements we make in this news release include market conditions and those set forth in reports or documents that we file from time to time with the United States Securities and Exchange Commission. All forward-looking statements attributable to Conversion Labs, Inc. or a person acting on its behalf are expressly qualified in their entirety by this cautionary language.

Trademarks are the property of their respective owners.

Company Contact
Conversion Labs
Juan Manuel Piñeiro Dagnery
CFO
Email Contact

Media and Investor Relations Contact
Ron Both or Grant Stude
CMA Investor Relations
Tel (949) 432-7566
Email Contact

FAQ

What is the recent stock split for Conversion Labs (CVLB)?

Conversion Labs executed a 1-for-5 reverse stock split on October 14, 2020.

Why did Conversion Labs (CVLB) implement a reverse stock split?

The reverse split was implemented to meet NASDAQ's minimum share price requirement of $4.00 for uplisting.

What is the new trading symbol for Conversion Labs after the reverse split?

After the reverse split, the stock will trade as 'CVLBD' for 20 business days before returning to 'CVLB.'

How much did Conversion Labs' revenue increase in 2020?

Conversion Labs reported an annualized revenue run rate of $46.8 million, up from $12.5 million in 2019.