NLS Pharmaceutics Ltd. Announces Expected Implementation of 1-for-40 Reverse Share Split
NLS Pharmaceutics (Nasdaq:NLSP) announced a 1-for-40 reverse share split of its common shares, expected to be implemented on September 27, 2024. The company's shares will continue trading on the Nasdaq Capital Market under the symbol 'NLSP' but with a new CUSIP Number. This decision was approved by shareholders on September 18, 2024.
Post-split, NLS's outstanding common shares will reduce from 46,880,000 to approximately 1,172,000. No fractional shares will be issued, with cash provided in lieu. The split will not significantly impact shareholders' ownership percentages or voting power. All outstanding options and warrants will be adjusted accordingly. VStock Transfer, will serve as the exchange agent for this process.
NLS Pharmaceutics (Nasdaq:NLSP) ha annunciato un raggruppamento azionario inverso 1-per-40 delle sue azioni ordinarie, previsto per essere attuato il 27 settembre 2024. Le azioni della società continueranno a essere scambiate sul Nasdaq Capital Market con il simbolo 'NLSP', ma con un nuovo numero CUSIP. Questa decisione è stata approvata dagli azionisti il 18 settembre 2024.
Dopo il raggruppamento, le azioni ordinarie di NLS passeranno da 46.880.000 a circa 1.172.000. Non verranno emesse azioni frazionarie, con un pagamento in contanti in sostituzione. Il raggruppamento non avrà un impatto significativo sulle percentuali di proprietà o sul potere di voto degli azionisti. Tutte le opzioni e i warrant in circolazione saranno adeguati di conseguenza. VStock Transfer servirà come agente di cambio per questo processo.
NLS Pharmaceutics (Nasdaq:NLSP) anunció un dividendo inverso de acciones 1 por 40 de sus acciones ordinarias, que se espera que se implemente el 27 de septiembre de 2024. Las acciones de la compañía continuarán cotizando en el Nasdaq Capital Market bajo el símbolo 'NLSP', pero con un nuevo número CUSIP. Esta decisión fue aprobada por los accionistas el 18 de septiembre de 2024.
Después del dividendo, las acciones ordinarias de NLS se reducirán de 46,880,000 a aproximadamente 1,172,000. No se emitirán acciones fraccionarias, y se proporcionará efectivo en su lugar. El dividendo no afectará significativamente los porcentajes de propiedad o el poder de voto de los accionistas. Todas las opciones y garantías pendientes se ajustarán en consecuencia. VStock Transfer fungirá como agente de intercambio para este proceso.
NLS 제약(Nasdaq:NLSP)은 1대 40 비율의 역주식분할을 발표했으며, 이는 2024년 9월 27일에 시행될 예정이다. 회사의 주식은 'NLSP' 기호로 Nasdaq Capital Market에서 계속 거래되지만 새로운 CUSIP 번호가 부여될 것이다. 이 결정은 2024년 9월 18일에 주주들에 의해 승인되었다.
분할 후 NLS의 유통 보통주는 46,880,000주에서 약 1,172,000주로 감소한다. 분할 과정에서 분할 주식은 발행되지 않으며, 현금으로 대신 지급된다. 이 분할은 주주의 소유 비율이나 투표권에 큰 영향을 미치지 않을 것이다. 모든 미결 옵션 및 보증서는 이에 따라 조정된다. VStock Transfer는 이 과정의 교환 대행사로 역할을 할 것이다.
NLS Pharmaceutics (Nasdaq:NLSP) a annoncé un rachat d'actions inversé de 1 pour 40 de ses actions ordinaires, qui devrait être mis en œuvre le 27 septembre 2024. Les actions de la société continueront à être échangées sur le Nasdaq Capital Market sous le symbole 'NLSP', mais avec un nouveau numéro CUSIP. Cette décision a été approuvée par les actionnaires le 18 septembre 2024.
Après le rachat, le nombre d'actions ordinaires de NLS sera réduit de 46 880 000 à environ 1 172 000. Aucune action fractionnée ne sera émise, un paiement en espèces sera fourni à la place. Le rachat n'aura pas d'impact significatif sur les pourcentages de propriété ou le pouvoir de vote des actionnaires. Toutes les options et bons de souscription en circulation seront ajustés en conséquence. VStock Transfer servira d'agent d'échange pour ce processus.
NLS Pharmaceutics (Nasdaq:NLSP) gab einen 1-für-40 Umkehrsplitt seiner Stammaktien bekannt, der voraussichtlich am 27. September 2024 umgesetzt wird. Die Aktien des Unternehmens werden weiterhin unter dem Symbol 'NLSP' im Nasdaq Capital Market gehandelt, jedoch mit einer neuen CUSIP-Nummer. Diese Entscheidung wurde am 18. September 2024 von den Aktionären genehmigt.
Nach dem Split wird die Anzahl der ausgegebenen Stammaktien von 46.880.000 auf etwa 1.172.000 reduziert. Es werden keine Bruchstücke ausgegeben, stattdessen wird Bargeld angeboten. Der Split wird die Eigentumsanteile oder die Stimmrechte der Aktionäre nicht wesentlich beeinflussen. Alle im Umlauf befindlichen Optionen und Warrants werden entsprechend angepasst. VStock Transfer wird als Austauschagent für diesen Prozess fungieren.
- Potential to maintain Nasdaq listing compliance
- No significant impact on shareholders' ownership percentages or voting power
- Reduction in total number of outstanding shares from 46,880,000 to approximately 1,172,000
- Potential short-term stock price volatility due to the reverse split
Insights
This reverse stock split is a significant move for NLS Pharmaceutics, aimed at maintaining Nasdaq listing compliance and potentially improving the stock's marketability. The 1-for-40 ratio is quite substantial, reducing the outstanding shares from 46,880,000 to approximately 1,172,000. This drastic reduction could lead to increased share price, which might attract more institutional investors and improve liquidity.
However, it's important to note that while the share price will mathematically increase, the company's market capitalization remains unchanged. The split doesn't fundamentally alter NLS's financial position or operations. Investors should be aware that reverse splits are often viewed cautiously, as they can signal financial distress or an attempt to artificially boost share price.
The impact on existing shareholders will be minimal in terms of ownership percentage, but the psychological effect and market perception could be significant. It's essential to monitor the stock's performance post-split and any changes in trading volume or institutional interest.
The reverse stock split announcement carries several legal and regulatory implications. Firstly, the company has followed proper corporate governance procedures by obtaining shareholder approval at the extraordinary meeting on September 18, 2024. This compliance is important for the validity of the action.
The filing with the commercial registry of the Canton of Zurich and subsequent publication in the Swiss Official Gazette of Commerce (SOGC) demonstrates adherence to Swiss legal requirements, as NLS is a Swiss company. This dual-jurisdiction compliance (Swiss and U.S.) is noteworthy.
Investors should be aware that while the split doesn't change their proportional ownership, it may affect their voting rights if they hold fractional shares. The provision of cash in lieu for fractional shares is a standard practice to address this issue.
From a regulatory perspective, the new CUSIP number and the continuity of the NLSP trading symbol on Nasdaq indicate proper coordination with U.S. securities authorities. This transparency and adherence to regulatory requirements bolster the company's credibility in executing this corporate action.
ZURICH, SWITZERLAND / ACCESSWIRE / September 25, 2024 / NLS Pharmaceutics Ltd. (Nasdaq:NLSP)(Nasdaq:NLSPW) ("NLS" or the "Company"), a Swiss clinical-stage biopharmaceutical company focused on the discovery and development of innovative therapies for patients with rare and complex central nervous system disorders, today announced that a reverse share split of the Company's issued and outstanding common shares, par value CHF 0.02 per share (the "Common Shares"), at a ratio of 1-for-40 is expected to be implemented at market open on September 27, 2024 (the "Reverse Split"). The Company's Common Shares are expected to begin trading on the Nasdaq Capital Market on a post-split basis at the market open on September 27, 2024, under the Company's existing trading symbol "NLSP", but will trade under a new CUSIP Number, H57830137. A notice of the reverse split will be filed with the commercial registry of the Canton of Zurich, Switzerland, on September 27, 2024. As a result, the reverse split will become effective in Switzerland on September 27, 2024, before Nasdaq market opening at 9:30 am (EST). Following its effectiveness in Switzerland, the reverse split will be published in the Swiss Official Gazette of Commerce (SOGC) on October 1, 2024, at 00:01am (Swiss time).
The reverse share split was approved by the Company's shareholders at the Company's extraordinary shareholders' meeting held on September 18, 2024 (the "Meeting").
After giving effect to the Reverse Split of the Company's Common Shares, each 40 Common Shares will be combined into one Common Share, such that the Company's 46,880,000 Common Shares outstanding will be reduced to approximately 1,172,000 Common Shares outstanding.
No fractional shares will be issued as a result of the Reverse Split and cash in lieu will be provided for any fractional shares resulting from the Reverse Split on a per shareholder basis. The Reverse Split will not impact any shareholder's percentage ownership of NLS or voting power, except for minimal effects resulting from the treatment of fractional shares. All options and warrants of the Company outstanding prior to the split will be appropriately adjusted.
VStock Transfer, LLC, will act as the exchange agent for the reverse split. Please contact VStock Transfer, LLC for further information at (212) 828-8436.
About NLS Pharmaceutics Ltd.
NLS is a global development-stage biopharmaceutical company, working with a network of world-class partners and internationally recognized scientists, focused on the discovery and development of innovative therapies for patients with rare and complex central nervous system disorders who have unmet medical needs. Headquartered in Switzerland and founded in 2015, NLS is led by an experienced management team with a track record of developing and commercializing product candidates. For more information, please visit www.nlspharma.com.
Safe Harbor Statement
This press release contains expressed or implied forward-looking statements pursuant to U.S. Federal securities laws, including statements related to the timing and completion of the offering, the satisfaction of customary closing conditions related to the offering and the intended use of proceeds therefrom. For example, the Company is using forward-looking statements when discussing the implementation, and proposed timing, of the Reverse Split. These forward-looking statements and their implications are based on the current expectations of the management of NLS only and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Except as otherwise required by law, NLS undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. More detailed information about the risks and uncertainties affecting NLS is contained under the heading "Risk Factors" in NLS' annual report on Form 20-F for the year ended December 31, 2023 filed with the Securities and Exchange Commission, or SEC, which is available on the SEC's website, www.sec.gov, and in subsequent filings made by NLS with the SEC.
For additional information:
Elena Thyen, CFO
NLS Pharmaceutics Ltd.
+41(0) 44 512 21 50
etp@nls-pharma.com
www.nls-pharma.com
SOURCE: NLS Pharmaceutics Ltd.
View the original press release on accesswire.com
FAQ
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