Jaguar Health, Inc. Announces Reverse Stock Split
Jaguar Health will implement a 1-for-60 reverse stock split of its common stock on May 23, 2024, following approval at the April 2024 Special Meeting of Stockholders. The split aims to support compliance with Nasdaq listing standards and attract institutional investors. Post-split, the stock will trade under the symbol JAGX with a new CUSIP number: 47010C805. Fractional shares will be settled in cash.
Equiniti Trust Company will handle the exchange process for stockholders holding certificates. No action is required for those with shares in brokerage accounts.
- Reverse stock split aims to support Nasdaq listing compliance.
- Stock price and outstanding share count may become more attractive to institutional investors.
- Shares will continue trading on Nasdaq under the symbol JAGX post-split.
- Reverse stock split ratio of 1-for-60 may indicate low stock price issues.
- Potential dilution of shareholder value due to reverse split.
- No fractional shares issued; cash settlement for fractional shares may result in minor losses for some shareholders.
Insights
The reverse stock split announced by Jaguar Health has several implications for investors. A reverse stock split consolidates the number of existing shares into fewer, proportionally more valuable, shares. In Jaguar's case, a 1-for-60 reverse split means that every 60 shares owned will be consolidated into one share. This action is often taken to meet minimum price requirements for stock exchange listings, in this case, Nasdaq's standards.
Short-term Impact: The immediate effect of the reverse stock split will likely be a higher nominal share price. This can help Jaguar avoid delisting from Nasdaq, which can have severe repercussions on liquidity and investor confidence. However, the underlying value of the company does not change as a result of a reverse split.
Long-term Impact: The company's management highlights the potential to attract more institutional investors post-split. Institutional investors often shy away from stocks trading at very low prices due to perceived risk and liquidity constraints. By increasing the share price, Jaguar may become more attractive to these larger investors, potentially leading to increased investment and stability. However, it's important to note that a reverse split can sometimes indicate underlying financial distress, which might deter wary investors.
Investor Considerations: Retail investors should be aware that while the reverse split could prevent delisting and attract institutional interest, it does not address any underlying business issues. It's important to monitor the company's operational performance and strategic plans post-split to gauge future prospects.
From a market perspective, the reverse stock split by Jaguar Health aims to align the company's stock with the psychological and practical thresholds preferred by institutional investors. Stocks priced under
Market Sentiment: The move could boost market sentiment in the short term by signaling that the company is taking active steps to comply with major exchange requirements. However, it is essential to understand market perception. Often, reverse splits are seen as a mechanism to artificially inflate stock prices without addressing fundamental business performance, which could lead to skepticism.
Long-term Viability: For the reverse split to have a lasting positive effect, Jaguar Health must complement this action with tangible improvements in business performance. Investors should watch for future earnings reports, product developments and any strategic partnerships that could substantiate the higher share price and validate the company's growth potential.
Practical Insights: Stockholders may notice an increase in liquidity if institutional investors begin to take positions in the restructured stock. However, they should remain cautious and consider the overall health of the company and the market's response over the coming quarters.
Reverse split approved at April 2024 Special Meeting of Stockholders
Shares of Jaguar Health common stock to begin trading on split-adjusted basis on May 23, 2024
SAN FRANCISCO, CA / ACCESSWIRE / May 17, 2024 / Jaguar Health, Inc. (NASDAQ:JAGX) ("Jaguar" or the "Company") today announced that the Company will effect a reverse stock split of its issued and outstanding voting common stock ("Common Stock"), at an exchange ratio of 1-for-60, on Thursday, May 23, 2024 (the "Effective Date") in order to support the Company's compliance with Nasdaq's listing standards. The Company's Common Stock will begin trading on a split-adjusted basis when the market opens on the Effective Date and will remain listed on The Nasdaq Capital Market under the symbol "JAGX". The new CUSIP number for the Company's Common Stock following the reverse stock split is 47010C805.
"Jaguar's board of directors has determined that effecting a reverse stock split at this time will, in addition to supporting the Company's compliance with Nasdaq's listing standards, provide Jaguar with the opportunity to achieve a share price and outstanding share count that is more attractive to institutional investors," said Lisa Conte, Jaguar's president and CEO.
The effectuation of the reverse stock split follows the approval of a proposal submitted to Jaguar stockholders at a Special Meeting of Stockholders (the "Special Meeting"). This proposal, which was approved by the affirmative vote of the holders of a majority in voting power of the votes cast affirmatively or negatively (excluding abstention and broker non-votes) on such proposal by shares of Jaguar Common Stock and Series J Perpetual Preferred Stock of the Company outstanding as of the record date for 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 March 15, 2024. Stockholders may obtain a free copy of the proxy statement and other documents filed by Jaguar with the SEC at http://www.sec.gov. The proxy statement is also available on the Company's corporate website.
When the reverse stock split becomes effective, every sixty (60) shares of the Company's Common Stock immediately prior to the Effective Date shall automatically be reclassified into one (1) share of Common Stock, without any change in the par value per share, and this change will be reflected on Nasdaq's website and other stock quote platforms. No fractional shares will be issued as a result of the reverse stock split. Stockholders who otherwise would be entitled to receive a fractional share in connection with the reverse stock split will receive a cash payment in lieu thereof.
Equiniti Trust Company, LLC is acting as exchange agent for the reverse stock split and will send instructions to stockholders of record who hold stock certificates regarding the exchange of their certificates for post-reverse stock split shares of Common Stock. Stockholders who hold their shares in brokerage accounts or "street name" are not required to take any action to effect the exchange of their shares.
About the Jaguar Health Family of Companies
Jaguar Health, Inc. (Jaguar) is a commercial stage pharmaceuticals company focused on developing novel proprietary prescription medicines sustainably derived from plants from rainforest areas for people and animals with gastrointestinal distress, specifically associated with overactive bowel, which includes symptoms such as chronic debilitating diarrhea, urgency, bowel incontinence, and cramping pain. Jaguar family company Napo Pharmaceuticals (Napo) focuses on developing innovative, patient-centric therapeutic solutions for essential supportive care and the management of neglected side effects across complicated disease states. Napo's goal is to redefine what is possible in supportive care, providing hope and improving outcomes for patients worldwide. Napo's crofelemer drug product candidate is the subject of the OnTarget study, a pivotal Phase 3 clinical trial for preventive treatment of chemotherapy-induced overactive bowel (CIOB) in adults with cancer on targeted therapy. Jaguar family company Napo Therapeutics is an Italian corporation Jaguar established in Milan, Italy in 2021 focused on expanding crofelemer access in Europe and specifically for orphan and/or rare diseases. Jaguar Animal Health is a Jaguar tradename. Magdalena Biosciences, a joint venture formed by Jaguar and Filament Health Corp. that emerged from Jaguar's Entheogen Therapeutics Initiative (ETI), is focused on developing novel prescription medicines derived from plants for mental health indications.
For more information about:
Jaguar Health, visit https://jaguar.health
Napo Pharmaceuticals, visit www.napopharma.com
Napo Therapeutics, visit napotherapeutics.com
Magdalena Biosciences, visit magdalenabiosciences.com
Visit Jaguar on LinkedIn: https://www.linkedin.com/company/jaguar-health/
Visit Jaguar on X: https://twitter.com/Jaguar_Health
Visit Jaguar on Instagram: https://www.instagram.com/jaguarhealthcommunity/
Forward-Looking Statements
Certain statements in this press release constitute "forward-looking statements." These include statements regarding Jaguar's expectation that the Company's Common Stock will begin trading on a split-adjusted basis when the market opens on the Effective Date, and the expectation that effecting a reverse stock split may provide Jaguar with the opportunity to achieve a share price and outstanding share count that is more attractive to institutional investors. In some cases, you can identify forward-looking statements by terms such as "may," "will," "should," "expect," "plan," "aim," "anticipate," "could," "intend," "target," "project," "contemplate," "believe," "estimate," "predict," "potential" or "continue" or the negative of these terms or other similar expressions. The forward-looking statements in this release are only predictions. Jaguar has based these forward-looking statements largely on its current expectations and projections about future events. These forward-looking statements speak only as of the date of this release and are subject to a number of risks, uncertainties and assumptions, some of which cannot be predicted or quantified and some of which are beyond Jaguar's control. Except as required by applicable law, Jaguar does not plan to publicly update or revise any forward-looking statements contained herein, whether as a result of any new information, future events, changed circumstances or otherwise.
Contact:
hello@jaguar.health
Jaguar-JAGX
SOURCE: Jaguar Health, Inc.
View the original press release on accesswire.com
FAQ
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