iSpecimen Announces 1-for-20 Reverse Stock Split
iSpecimen Inc. (Nasdaq: ISPC) has announced a 1-for-20 reverse stock split effective September 13, 2024. The company's common stock will begin trading on a split-adjusted basis on September 16, 2024, under the same Nasdaq symbol 'ISPC'. This decision, approved by stockholders and the Board, aims to increase the per share trading price and attract institutional investors. The split will automatically combine every 20 shares into one, with proportionate adjustments made to stock options, warrants, and restricted stock units. Broadridge Corporate Issuer Solutions, will act as the exchange agent for the process.
iSpecimen Inc. (Nasdaq: ISPC) ha annunciato un raggruppamento di azioni 1 a 20 che entrerà in vigore il 13 settembre 2024. Le azioni ordinarie dell'azienda inizieranno a essere scambiate su base modificata il 16 settembre 2024, con lo stesso simbolo Nasdaq 'ISPC'. Questa decisione, approvata dagli azionisti e dal Consiglio, mira a incrementare il prezzo di trading per azione e attrarre investitori istituzionali. Il raggruppamento combinerà automaticamente ogni 20 azioni in una, con adeguamenti proporzionali per opzioni azionarie, pergamene e unità azionarie ristrette. Broadridge Corporate Issuer Solutions agirà come agente di cambio per il processo.
iSpecimen Inc. (Nasdaq: ISPC) ha anunciado un desdoblamiento de acciones inverso 1 por 20 que entrará en vigor el 13 de septiembre de 2024. Las acciones ordinarias de la compañía comenzarán a cotizar sobre una base ajustada por el desdoblamiento el 16 de septiembre de 2024, bajo el mismo símbolo de Nasdaq 'ISPC'. Esta decisión, aprobada por los accionistas y la Junta, tiene como objetivo aumentar el precio de negociación por acción y atraer inversores institucionales. El desdoblamiento combinará automáticamente cada 20 acciones en una, con ajustes proporcionales realizados a opciones de acciones, warrants y unidades de acciones restringidas. Broadridge Corporate Issuer Solutions actuará como agente de intercambio para el proceso.
iSpecimen Inc. (Nasdaq: ISPC)는 2024년 9월 13일부터 시행되는 1대 20 주식 병합을 발표했습니다. 회사의 보통주 주식은 2024년 9월 16일부터 분할 조정 기준으로 거래가 시작되며, 같은 Nasdaq 기호 'ISPC'로 거래됩니다. 주주와 이사회의 승인을 받은 이 결정은 주당 거래 가격을 높이고 기관 투자자를 유치하기 위한 것입니다. 이 병합을 통해 자동으로 20주가 1주로 합쳐지며, 주식 옵션, 워런트 및 제한 주식 단위에 대한 비례 조정이 이루어집니다. Broadridge Corporate Issuer Solutions가 이 과정의 교환 대행자로 활동할 것입니다.
iSpecimen Inc. (Nasdaq: ISPC) a annoncé un regroupement d'actions 1 pour 20 qui prendra effet le 13 septembre 2024. Les actions ordinaires de l'entreprise commenceront à être échangées sur une base ajustée en fonction du regroupement à partir du 16 septembre 2024, sous le même symbole Nasdaq 'ISPC'. Cette décision, approuvée par les actionnaires et le Conseil d'administration, vise à augmenter le prix de négociation par action et à attirer des investisseurs institutionnels. Le regroupement combinera automatiquement chaque 20 actions en une, avec des ajustements proportionnels effectués pour les options sur actions, les bons de souscription et les unités d'actions restreintes. Broadridge Corporate Issuer Solutions agira en tant qu'agent de change pour le processus.
iSpecimen Inc. (Nasdaq: ISPC) hat einen 1 zu 20 Aktiensplit angekündigt, der am 13. September 2024 in Kraft tritt. Die Stammaktien des Unternehmens werden ab dem 16. September 2024 auf einer nach dem Split angepassten Basis unter demselben Nasdaq-Symbol 'ISPC' gehandelt. Diese von den Aktionären und dem Vorstand genehmigte Entscheidung zielt darauf ab, den Handelspreis pro Aktie zu erhöhen und institutionelle Investoren anzuziehen. Der Split wird automatisch jede 20 Aktien zu einer Aktie zusammenfassen, wobei proportionale Anpassungen für Aktienoptionen, Warrants und beschränkte Aktieneinheiten vorgenommen werden. Broadridge Corporate Issuer Solutions wird als Austauschagent für den Prozess fungieren.
- Potential to attract institutional investors
- Aims to comply with Nasdaq's minimum bid price requirement
- May improve stock marketability and liquidity
- Indicates potential struggle to maintain Nasdaq listing requirements
- No change in company's market capitalization
- Possible negative market perception of reverse splits
Insights
iSpecimen's 1-for-20 reverse stock split is a defensive move to maintain Nasdaq listing compliance. This drastic ratio suggests significant share price erosion, likely due to poor financial performance or market conditions. While it artificially boosts the stock price, it doesn't change the company's fundamental value. Key implications:
- Reduced float may increase volatility
- Potential for increased investor interest due to higher share price
- Risk of further dilution if underlying issues aren't addressed
Investors should scrutinize iSpecimen's financials and growth prospects before considering this a buying opportunity. The split alone doesn't solve underlying business challenges.
This reverse split reflects broader challenges in the biospecimen market. iSpecimen's struggle to maintain Nasdaq compliance suggests:
- Increased competition in the biospecimen sourcing space
- Potential shifts in research funding priorities
- Possible slowdown in biomedical research activities
The company's ability to attract institutional investors post-split will be crucial. However, without addressing fundamental market positioning and growth strategies, this move may only provide temporary relief. Investors should monitor iSpecimen's market share and client acquisition metrics in coming quarters to gauge the effectiveness of this financial maneuver.
WOBURN, Mass., Sept. 11, 2024 (GLOBE NEWSWIRE) -- iSpecimen Inc. (Nasdaq: ISPC) (“iSpecimen” or the “Company”), an online global marketplace that connects scientists requiring biospecimens for medical research with a network of healthcare specimen providers, announced today that it will effect a reverse stock split of its issued and outstanding shares of common stock, par value
At the Company's annual meeting of stockholders held on July 19, 2024, the stockholders approved a proposal to amend the Company's Fourth Amended and Restated Certificate of Incorporation to effect a reverse stock split in the range of 1-for-10 to 1-for-20, with the final ratio to be determined by the Board of Directors (the “Board”). On August 19, 2024, the Board approved a 1-for-20 reverse stock split.
When the reverse stock split becomes effective, every 20 shares of the Company's issued and outstanding common stock, as well as all shares held by the Company in treasury, will automatically be combined into one share of common stock, without any change in the par value per share. In addition, (i) a proportionate adjustment will be made to the per share exercise price and the number of shares issuable upon the exercise of all outstanding stock options and warrants to purchase shares of common stock, (ii) a proportionate adjustment will also be made in the number of shares of common stock issuable upon the vesting of restricted stock units, and (iii) the number of shares reserved for issuance pursuant to the Company's stock incentive plans will also be reduced proportionately. Any fraction of a share of common stock that would be created as a result of the reverse stock split will be rounded up to the nearest whole share.
The reverse stock split is intended to increase the per share trading price of the Company's common stock to better attract certain institutional and other investors and comply with the minimum bid price requirement for maintaining the listing of the Company's common stock on Nasdaq.
Broadridge Corporate Issuer Solutions, LLC, the Company's transfer agent, will act as the exchange agent for the reverse stock split. Registered stockholders holding pre-split shares of the common stock electronically in book-entry form are not required to take any action to receive post-split shares. Stockholders of record will be receiving information from Broadridge Corporate Issuer Solutions, LLC about the process for exchanging their pre-split shares for post-split shares.
About iSpecimen
iSpecimen (Nasdaq: ISPC) offers an online marketplace for human biospecimens, connecting scientists in commercial and non-profit organizations with healthcare providers that have access to patients and specimens needed for medical discovery. Proprietary, cloud-based technology enables scientists to intuitively search for specimens and patients across a federated partner network of hospitals, labs, biobanks, blood centers and other healthcare organizations. For more information, please visit www.ispecimen.com.
Forward Looking Statements
This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements are characterized by future or conditional verbs such as "may," "will," "expect," "intend," "anticipate," “believe," "estimate," "continue" or similar words. You should read statements that contain these words carefully because they discuss future expectations and plans, which contain projections of future results of operations or financial condition or state other forward-looking information.
Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to the risk factors contained in the Company's filings with the U.S. Securities and Exchange Commission, which are available for review at www.sec.gov. Forward-looking statements speak only as of the date they are made. New risks and uncertainties arise over time, and it is not possible for the Company to predict those events or how they may affect the Company. If a change to the events and circumstances reflected in the Company's forward-looking statements occurs, the Company's business, financial condition and operating results may vary materially from those expressed in the Company's forward-looking statements.
Readers are cautioned not to put undue reliance on forward-looking statements, and the Company assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise.
For further information, please contact:
Investor Contact
KCSA Strategic Communications
Phil Carlson
iSpecimen@kcsa.com
FAQ
What is the reverse stock split ratio announced by iSpecimen (ISPC)?
When will iSpecimen's (ISPC) stock begin trading on a split-adjusted basis?
Why is iSpecimen (ISPC) implementing a reverse stock split?
Will iSpecimen's (ISPC) Nasdaq symbol change after the reverse split?
