Organovo Announces Reverse Stock Split
Organovo Holdings (ONVO) has announced a 1-for-12 reverse stock split effective March 20, 2025, at 5:00 p.m. Eastern Time. The stock will begin trading on a split-adjusted basis on March 21, 2025, maintaining its Nasdaq symbol 'ONVO' with a new CUSIP number.
The split will reduce outstanding shares from approximately 21.4 million to 1.8 million, with no change to the par value of $0.001 per share or the authorized number of shares. Stockholders with fractional shares will receive cash payments based on the closing price on March 19, 2025.
This strategic move aims to regain compliance with Nasdaq's minimum bid price requirement of $1.00 per share. The split ratio was approved by the board on March 6, 2025, following stockholder authorization granted at the November 20, 2024 annual meeting.
Organovo Holdings (ONVO) ha annunciato uno scissione azionaria inversa 1 per 12 che entrerà in vigore il 20 marzo 2025 alle 17:00 ora orientale. Le azioni inizieranno a essere scambiate sulla base della scissione il 21 marzo 2025, mantenendo il simbolo Nasdaq 'ONVO' con un nuovo numero CUSIP.
La scissione ridurrà le azioni in circolazione da circa 21,4 milioni a 1,8 milioni, senza modificare il valore nominale di $0,001 per azione o il numero autorizzato di azioni. Gli azionisti con azioni frazionarie riceveranno pagamenti in contanti basati sul prezzo di chiusura del 19 marzo 2025.
Questa mossa strategica mira a ripristinare la conformità con il requisito di prezzo minimo di offerta di Nasdaq di $1,00 per azione. Il rapporto di scissione è stato approvato dal consiglio il 6 marzo 2025, dopo l'autorizzazione degli azionisti concessa durante l'assemblea annuale del 20 novembre 2024.
Organovo Holdings (ONVO) ha anunciado una división de acciones inversa de 1 por 12 que entrará en vigor el 20 de marzo de 2025 a las 5:00 p.m. hora del Este. Las acciones comenzarán a negociarse en base a la división el 21 de marzo de 2025, manteniendo su símbolo de Nasdaq 'ONVO' con un nuevo número CUSIP.
La división reducirá las acciones en circulación de aproximadamente 21,4 millones a 1,8 millones, sin cambiar el valor nominal de $0,001 por acción ni el número autorizado de acciones. Los accionistas con acciones fraccionarias recibirán pagos en efectivo basados en el precio de cierre del 19 de marzo de 2025.
Este movimiento estratégico tiene como objetivo recuperar el cumplimiento del requisito de precio mínimo de oferta de Nasdaq de $1,00 por acción. La proporción de la división fue aprobada por la junta el 6 de marzo de 2025, tras la autorización de los accionistas otorgada en la reunión anual del 20 de noviembre de 2024.
Organovo Holdings (ONVO)는 1대 12 비율의 주식 분할을 2025년 3월 20일 오후 5시(동부 표준시)부터 시행한다고 발표했습니다. 주식은 2025년 3월 21일부터 분할 조정 기준으로 거래를 시작하며, 나스닥 심볼 'ONVO'와 새로운 CUSIP 번호를 유지합니다.
이번 분할로 발행 주식 수는 약 2140만 주에서 180만 주로 감소하며, 주당 액면가는 $0.001로 변동이 없고, 승인된 주식 수에도 변화가 없습니다. 분할 주식을 보유한 주주는 2025년 3월 19일 종가를 기준으로 현금 지급을 받게 됩니다.
이 전략적 조치는 나스닥의 최소 입찰가 요건인 주당 $1.00을 충족하기 위한 것입니다. 분할 비율은 2025년 3월 6일 이사회에서 승인되었으며, 2024년 11월 20일 연례 회의에서 주주들의 승인을 받았습니다.
Organovo Holdings (ONVO) a annoncé un fractionnement inversé d'actions de 1 pour 12 qui prendra effet le 20 mars 2025 à 17h00, heure de l'Est. Les actions commenceront à être échangées sur une base ajustée au fractionnement le 21 mars 2025, conservant son symbole Nasdaq 'ONVO' avec un nouveau numéro CUSIP.
Le fractionnement réduira le nombre d'actions en circulation d'environ 21,4 millions à 1,8 million, sans changement de la valeur nominale de 0,001 $ par action ni du nombre autorisé d'actions. Les actionnaires détenant des actions fractionnaires recevront des paiements en espèces basés sur le prix de clôture du 19 mars 2025.
Ce mouvement stratégique vise à retrouver la conformité avec l'exigence de prix minimum de Nasdaq de 1,00 $ par action. Le ratio de fractionnement a été approuvé par le conseil d'administration le 6 mars 2025, suite à l'autorisation des actionnaires accordée lors de l'assemblée annuelle du 20 novembre 2024.
Organovo Holdings (ONVO) hat einen 1-für-12 Rückwärtssplit angekündigt, der am 20. März 2025 um 17:00 Uhr Eastern Time wirksam wird. Die Aktien werden ab dem 21. März 2025 auf gesplitteter Basis gehandelt, wobei das Nasdaq-Symbol 'ONVO' und eine neue CUSIP-Nummer beibehalten werden.
Der Split wird die ausstehenden Aktien von etwa 21,4 Millionen auf 1,8 Millionen reduzieren, ohne dass sich der Nennwert von $0,001 pro Aktie oder die genehmigte Anzahl der Aktien ändert. Aktionäre mit Bruchstücken erhalten Barzahlungen basierend auf dem Schlusskurs vom 19. März 2025.
Dieser strategische Schritt zielt darauf ab, die Einhaltung der Mindestgebotsanforderung von Nasdaq von $1,00 pro Aktie wiederherzustellen. Das Verhältnis des Splits wurde am 6. März 2025 vom Vorstand genehmigt, nachdem die Genehmigung der Aktionäre bei der Hauptversammlung am 20. November 2024 erteilt wurde.
- Strategic action to maintain Nasdaq listing compliance
- Stockholder and board approval already secured for the reverse split
- Significant share consolidation indicates potential listing compliance issues
- Reverse split suggests stock price has fallen below Nasdaq requirements
- Possible negative market perception of reverse splits as defensive measures
Insights
Organovo Holdings announced a 1-for-12 reverse stock split to regain compliance with Nasdaq's
The mechanics of the split will reduce outstanding shares from 21.4 million to 1.8 million while maintaining the same authorized share count, essentially increasing the company's capacity for future dilution. While seemingly technical in nature, this corporate action carries significant implications for different stakeholders:
- The company preserves its vital Nasdaq listing, maintaining access to capital markets and preventing forced selling by institutional investors with listing requirements
- Retail investors face the reality that reverse splits frequently precede further share price erosion, as they address symptoms rather than underlying business challenges
- Options contracts and technical analysis patterns will reset, creating potential trading disruptions
For clinical-stage biotechnology companies like Organovo, which is developing novel inflammatory bowel disease treatments, maintaining market access is particularly important given the capital-intensive nature of drug development programs. However, the reverse split does nothing to address fundamental business metrics, cash runway concerns, or development timelines.
The board's selection of a 1-for-12 ratio from their authorized range (1-for-5 to 1-for-20) suggests they're attempting to minimize share consolidation while sufficiently addressing the compliance issue. Stockholders overwhelmingly approved this contingency plan back in November 2024, indicating they view maintaining listing status as preferable to the alternatives.
SAN DIEGO, March 19, 2025 (GLOBE NEWSWIRE) -- Organovo Holdings, Inc. (Nasdaq: ONVO), a clinical stage biotechnology company focused on developing novel treatment approaches in inflammatory bowel disease (IBD), today announced that it will effect a 1-for-12 reverse stock split of its issued and outstanding common stock that will become effective at 5:00 p.m. Eastern Time on Thursday, March 20, 2025. Organovo’s common stock will commence trading on a reverse stock split-adjusted basis at the opening of the market on Friday, March 21, 2025.
Following the reverse stock split, Organovo’s common stock will continue to trade on the Nasdaq Capital Market under the symbol “ONVO” with a new CUSIP number of 68620A302.
At the effective time of the reverse stock split, every twelve (12) shares of Organovo’s issued and outstanding common stock will be automatically converted into one (1) issued and outstanding share of common stock without any change in the par value of
Furthermore, the number of shares of common stock available for issuance under Organovo’s equity incentive plans will be proportionately adjusted for the reverse stock split ratio, such that fewer shares will be subject to such plans.
At Organovo’s annual meeting of stockholders held on November 20, 2024, Organovo’s stockholders approved the reverse stock split and gave Organovo’s board of directors’ discretionary authority to select a ratio for the reverse stock split ranging from 1-for-5 shares to 1-for-20 shares. Organovo’s board of directors approved the reverse stock split at a ratio of 1-for-12 on March 6, 2025. The reverse stock split is intended for Organovo to regain compliance with the minimum bid price requirement of
Organovo’s transfer agent, Continental Stock Transfer & Trust Company, will provide information to stockholders regarding their stock ownership following the reverse split and cash in lieu of fractional share payments, if applicable. Stockholders holding their shares in book-entry form or through a bank, broker or other nominee do not need to take any action in connection with the reverse stock split. Their accounts will be automatically adjusted to reflect the number of shares owned. Beneficial holders are encouraged to contact their bank, broker or other nominee with any procedural questions.
About Organovo
Organovo is a clinical stage biotechnology company that is developing drugs that are demonstrated to be effective in three-dimensional (3D) human tissues as candidates for drug development. The company has proprietary technology used to build 3D human tissues that mimic key aspects of native human tissue composition, architecture, function, and disease. For more information visit Organovo's website at www.organovo.com.
Forward-looking Statements
Any statements contained in this press release that do not describe historical facts constitute forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Any forward-looking statements contained herein are based on current expectations but are subject to a number of risks and uncertainties. These risks and uncertainties and other factors are identified and described in more detail in the Company’s filings with the SEC, including its Annual Report on Form 10-K filed with the SEC on May 31, 2024, as such risk factors are updated in its most recently filed Quarterly Report on Form 10-Q filed with the SEC on February 19, 2025. You should not place undue reliance on these forward-looking statements, which speak only as of the date that they were made. These cautionary statements should be considered with any written or oral forward-looking statements that the Company may issue in the future. Except as required by applicable law, including the securities laws of the United States, the Company does not intend to update any of the forward-looking statements to conform these statements to reflect actual results, later events, or circumstances or to reflect the occurrence of unanticipated events.
Contacts:
Investor Relations
info@organovo.com
Source: Organovo, Inc.
