Motus GI Announces 1-FOR-20 Reverse Stock Split
Motus GI Holdings, Inc. (NASDAQ: MOTS) announced a 1-for-20 reverse stock split effective July 26, 2022, aimed at meeting the $1.00 minimum bid price requirement for continued listing on The Nasdaq Capital Market. This action will reduce the number of outstanding shares from approximately 55.3 million to 2.8 million. The reverse split has been approved by shareholders and will apply uniformly to all stockholders, affecting both outstanding shares and those related to warrants and stock options.
- Reverse stock split designed to increase share price above $1.00 for Nasdaq compliance.
- Shareholder approval indicates support for corporate governance.
- Reverse splits often signal underlying company struggles or low market confidence.
- Shareholders receiving cash for fractional shares may perceive a loss in potential value.
FORT LAUDERDALE, Fla., July 25, 2022 (GLOBE NEWSWIRE) -- Motus GI Holdings, Inc., (NASDAQ: MOTS) ("Motus GI" or the "Company"), a medical technology company providing endoscopy solutions that improve clinical outcomes and enhance the cost-efficiency associated with the diagnosis and management of gastrointestinal conditions, announced today that it will effect a 1-for-20 reverse stock split of its outstanding common stock. The Company's common stock will begin trading on a split-adjusted basis at the opening of the market on Tuesday, July 26, 2022. The Company’s common stock will continue to trade on The Nasdaq Capital Market under the symbol “MOTS” and under the new CUSIP number, 62014P405.
The reverse stock split is intended to increase the per share trading price of Motus GI’s common stock to satisfy the
As a result of the reverse stock split, every twenty pre-split shares of common stock outstanding will become one share of common stock. The reverse stock split will not change the authorized number of shares of the Company’s common stock. The reverse stock split will affect all stockholders uniformly and will not alter any stockholder’s percentage interest in the Company’s equity, except to the extent that the reverse stock split results in some stockholders owning a fractional share. No fractional shares will be issued in connection with the reverse split. Stockholders who would otherwise be entitled to receive a fractional share will instead receive a cash payment based on the average closing price of the Company’s common stock on the five (5) consecutive days leading up to the effective date of the reverse split. The reverse split will also apply to common stock issuable upon the exercise of Motus GI’s outstanding warrants and stock options, with a proportionate adjustment to the exercise prices thereof, and under the Company’s equity incentive plans.
The reverse stock split will reduce the number of shares of common stock issued and outstanding from approximately 55.3 million to approximately 2.8 million.
On June 30, 2022, the holders of a majority of the Company’s outstanding shares of common stock approved the reverse stock split and gave the Company’s board of directors discretionary authority to select a ratio for the split ranging from 1-for-2 to 1-for-20. The board of directors approved the reverse stock split at a ratio of 1-for-20 on July 20, 2022.
Continental Stock Transfer & Trust Company is acting as the exchange agent and transfer agent for the reverse stock split. Stockholders holding their shares in book-entry form or in brokerage accounts need not take any action in connection with the reverse stock split. Beneficial holders are encouraged to contact their bank, broker or custodian with any procedural questions.
About Motus GI
Motus GI Holdings, Inc. is a medical technology company, with subsidiaries in the U.S. and Israel, providing endoscopy solutions that improve clinical outcomes and enhance the cost-efficiency associated with the diagnosis and management of gastrointestinal conditions.
For more information, visit www.motusgi.com and connect with the Company on Twitter, LinkedIn and Facebook.
Forward-Looking Statements
This press release contains certain forward-looking statements. Forward-looking statements are based on the Company's current expectations and assumptions. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements. These statements may be identified by the use of forward-looking expressions, including, but not limited to, "expect," "anticipate," "intend," "plan," "believe," "estimate," "potential," "predict," "project," "should," "would" and similar expressions and the negatives of those terms, including without limitation, risks related to the continued impact of the COVID-19 pandemic, risks inherent in the development and commercialization of potential products, possible or assumed future results of operations, business strategies, potential grow opportunities, uncertainty in the timing and results of clinical trials or regulatory approvals, maintenance of intellectual property rights or other risks discussed in the Company’s quarterly and annual reports filed with the Securities and Exchange Commission, and its other filings with the Securities and Exchange Commission. Prospective investors are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.
Investor Contact:
Troy Williams
LifeSci Advisors
(518) 221-0106
twilliams@lifesciadvisors.com
FAQ
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