Streamline Health® Announces 1-For-15 Reverse Stock Split

Rhea-AI Summary

Streamline Health Solutions, Inc. (NASDAQ: STRM) has announced a 1-for-15 reverse stock split of its outstanding shares of Common Stock, effective October 4, 2024. This decision, approved by the Board of Directors and stockholders, aims to bring the company into compliance with Nasdaq's minimum bid price requirement. The Common Stock will continue trading on The Nasdaq Capital Market under the symbol "STRM" but with a new CUSIP number.

Key points:

• Effective at 12:01 a.m. EDT on October 4, 2024
• Every 15 shares will be combined into one share
• No fractional shares will be issued; cash will be paid for fractional entitlements
• The split applies to all convertible securities and equity awards
• Computershare Inc. is acting as the exchange agent

Positive

• Potential compliance with Nasdaq's minimum bid price requirement, reducing the risk of delisting
• Possible increase in stock price, potentially attracting more institutional investors

Negative

• Reduction in the total number of outstanding shares, which may decrease liquidity
• Possible negative market perception of reverse stock splits
• Cash payout for fractional shares may result in minor capital loss for some shareholders

ATLANTA, Sept. 26, 2024 (GLOBE NEWSWIRE) -- Streamline Health Solutions, Inc. (“Streamline” or the “Company”) (NASDAQ: STRM), a leading provider of solutions that enable healthcare providers to improve financial performance, today announced that it will proceed with a 1-for-15 reverse stock split (the “Reverse Stock Split”) of its outstanding shares of Common Stock (the “Common Stock”) following approval by its Board of Directors. The 1-for-15 ratio is within the range approved by the Company’s stockholders at the Special Meeting of Stockholders held on September 19, 2024.

The Reverse Stock Split is intended to bring the Company into compliance with the minimum bid price requirement for continued listing on The Nasdaq Capital Market. The Reverse Stock Split is expected to become effective at 12:01 a.m., Eastern Daylight Time, on October 4, 2024 (the “Effective Time”), and the Common Stock is expected to begin trading on a post-split basis when the market opens on October 4, 2024, under the new CUSIP number 86323X205. The Common Stock will continue to be traded on The Nasdaq Capital Market under the symbol “STRM.”

At the Effective Time, each 15 shares of Common Stock issued and outstanding will be automatically combined into one share of Common Stock. No fractional shares will be issued in connection with the Reverse Stock Split, and, in lieu thereof, the Company will pay each stockholder of record at the time of effectiveness of the Reverse Stock Split who otherwise would be entitled to receive fractional shares (because such stockholder holds a number of pre-Reverse Stock Split shares not evenly divisible by 15) an amount in cash equal to the fraction to which the stockholder would otherwise be entitled multiplied by the closing sales price of the Common Stock as reported on The Nasdaq Capital Market on the date on which the Effective Time occurs.

The Reverse Stock Split will also apply to any outstanding securities or rights convertible into, or exchangeable or exercisable for, Common Stock and all references to such Common Stock in agreements, arrangements, documents and plans relating thereto or any option or right to purchase or acquire shares of Common Stock shall be deemed to be references to the Common Stock or options or rights to purchase or acquire shares of Common Stock, as the case may be, after giving effect to the Reverse Stock Split. Additionally, all equity awards outstanding immediately prior to the Reverse Stock Split will be proportionately adjusted.

Computershare Inc. (“Computershare”), the Company’s transfer agent, is acting as the exchange agent for the Reverse Stock Split. Stockholders holding their shares electronically in book-entry form are not required to take any action to receive post-split shares. Stockholders owning shares through a bank, broker or other nominee will have their positions adjusted to reflect the Reverse Stock Split and will receive payment for any fractional shares in accordance with their respective bank’s, broker’s, or nominee’s particular processes. Stockholders may direct any questions to Computershare at (800) 962-4284.

Additional information concerning the Reverse Stock Split can be found in the Company’s definitive proxy statement on Schedule 14A filed with the Securities and Exchange Commission on August 19, 2024.

About Streamline Health

Streamline Health Solutions, Inc. (Nasdaq: STRM) enables healthcare organizations to proactively address revenue leakage and improve financial performance. We deliver integrated solutions, technology-enabled services and analytics that drive compliant revenue leading to improved financial performance across the enterprise. For more information, visit www.streamlinehealth.net

FAQ

When will the 1-for-15 reverse stock split for Streamline Health Solutions (STRM) take effect?

The reverse stock split for Streamline Health Solutions (STRM) will take effect at 12:01 a.m., Eastern Daylight Time, on October 4, 2024.

What is the purpose of Streamline Health Solutions' (STRM) reverse stock split?

The reverse stock split is intended to bring Streamline Health Solutions (STRM) into compliance with the minimum bid price requirement for continued listing on The Nasdaq Capital Market.

How will fractional shares be handled in Streamline Health Solutions' (STRM) reverse stock split?

No fractional shares will be issued. Instead, Streamline Health Solutions (STRM) will pay cash for fractional entitlements based on the closing sales price on the effective date of the split.

Will Streamline Health Solutions' (STRM) stock symbol change after the reverse split?

No, Streamline Health Solutions' stock will continue to trade on The Nasdaq Capital Market under the symbol "STRM" after the reverse split.