GUARDION HLTH SCIENCS INC - GHSI STOCK NEWS

Guardion Health Sciences, Inc. (Nasdaq: GHSI) reported strong financial results for the year ended December 31, 2022, showing revenues of $11.05 million, a 52.8% increase from $7.23 million in 2021, primarily driven by its Viactiv product line, which accounted for 96% of total revenues. Gross profit rose to $4.52 million, up from $3.11 million, although gross margin decreased to 40.9% from 43.0% due to rising operational costs. The company's loss from operations decreased to $(17.42 million) from $(24.75 million) in 2021, and net loss per share improved to $(14.15) compared to $(52.23). As of year-end, the company held $10.66 million in cash. A strategic review is underway to maximize shareholder value, indicating potential changes in the company's direction.

Guardion Health Sciences, Inc. (Nasdaq: GHSI) has engaged Alantra, LLC as its financial advisor for a strategic review and potential transactions. The company's Board of Directors believes the current market valuation does not reflect its value.

Chairman Robert N. Weingarten emphasized the need to explore options that could enhance stockholder value, including the potential sale of the company or its Viactiv brand. CEO Bret Scholtes acknowledged the company's progress since acquiring Viactiv but recognized the necessity of considering strategic measures in response to current market conditions. No specific timeline for the review has been set, and uncertainty remains regarding the outcomes of this process.

Guardion Health Sciences (GHSI) announced on January 24, 2023, that it has regained compliance with Nasdaq’s minimum bid price requirement of $1.00 per share. This follows a notice from Nasdaq on January 25, 2022, indicating that GHSI's stock had fallen below the required threshold. The compliance was confirmed after GHSI maintained a closing bid price of $1.00 or higher for ten consecutive trading days, from January 9 to January 23, 2023. This achievement allows GHSI to continue its listing on Nasdaq, reaffirming its position in the clinical nutrition market.

Guardion Health Sciences, Inc. (NASDAQ: GHSI) announced a 1-for-50 reverse stock split effective January 6, 2023. This decision, approved by stockholders on January 5, aims to comply with Nasdaq's minimum bid price requirement. The new CUSIP number will be 40145Q500, and approximately 1,232,016 shares will remain outstanding post-split. Despite the action, the company cautions that it may not maintain compliance with Nasdaq requirements in the future. Further details are available in the definitive proxy statement filed with the SEC on December 12, 2022.

Guardion Health Sciences (Nasdaq: GHSI) announced a securities purchase agreement with institutional investors to acquire 495,000 shares of Series C convertible redeemable preferred stock and 5,000 shares of Series D non-convertible redeemable preferred stock at $9.50 per share, raising approximately $4.75 million. The Series C shares can convert into common stock at $0.15768 per share, contingent on stockholder approval for a reverse stock split. Holders of preferred stock can vote on this proposal, and the offering expects to close on November 29, 2022.

Guardion Health Sciences (GHSI) reported Q3 2022 revenues of $2.66 million, a 15% decline from $3.15 million in Q3 2021, primarily due to reduced sales of its Viactiv product line, which accounted for 96% of total revenues. Gross profit decreased by 22% to $1.09 million, leading to a gross margin of 40.9%. The company reported an operating loss of $1.74 million, an improvement from the previous year's loss of $3.02 million. Also, GHSI engaged Roth Capital Partners for a strategic review to explore opportunities for maximizing stockholder value.