Novus Therapeutics Announces One-for-Eighteen Reverse Stock Split
Novus Therapeutics, Inc. (NASDAQ: NVUS) announced a 1-for-18 reverse stock split of its common stock, effective at 12:01 a.m. (Eastern Time) on October 5, 2020. This action reduces the total number of outstanding shares while maintaining proportional ownership for existing stockholders. Post-split, stockholders with fractional shares will receive cash payments. The new CUSIP number assigned to Novus common stock is 67011N 204, and trading will start on a split-adjusted basis on the effective date.
- The reverse stock split may enhance the stock's marketability by increasing the share price, potentially appealing to institutional investors.
- No stockholder's percentage ownership will change, maintaining equity stability.
- Stockholders may perceive reverse splits negatively, reflecting potential underlying financial issues.
- A reverse stock split can lead to reduced liquidity, as there will be fewer shares in circulation.
IRVINE, Calif.--(BUSINESS WIRE)--Novus Therapeutics, Inc. (NASDAQ : NVUS) today announced that it has filed a Certificate of Amendment to its Amended and Restated Certificate of Incorporation to effect a reverse stock split of its issued and outstanding common stock, at a ratio of 1-for-18. The effective time of the reverse stock split will be 12:01 a.m. (Eastern Time) on October 5, 2020. Novus common stock will begin trading on a split-adjusted basis commencing upon market open on October 5, 2020.
As a result of the reverse split, every 18 shares of Novus’s issued and outstanding common stock will be automatically combined and converted into one issued and outstanding share of common stock, par value
No fractional shares of common stock will be issued as a result of the reverse stock split. Stockholders of record who would otherwise be entitled to receive a fractional share will receive a cash payment in lieu thereof. The reverse stock split impacts all holders of Novus’s common stock proportionally and will not impact any stockholder’s percentage ownership of common stock (except to the extent the reverse stock split results in any stockholder owning only a fractional share).
Novus has appointed its transfer agent, Continental Stock Transfer & Trust, to act as exchange agent for the reverse stock split. Stockholders owning shares via a bank, broker or other nominee will have their positions automatically adjusted to reflect the reverse stock split and will not be required to take further action in connection with the reverse stock split, subject to brokers’ particular processes.
About Novus Therapeutics
Novus Therapeutics, Inc. is a clinical stage biotechnology company using its expertise in targeting the CD40L pathway to develop potential treatments for organ or cellular transplantation, as well as for autoimmune and neurodegenerative diseases. Novus is headquartered in Irvine, Calif. For more information, please visit the company’s website at www.novustherapeutics.com.
