The reverse split is expected to take effect at the market open on December 5 and each stockholder’s percentage ownership interest in Nemaura remains unchanged, according to a statement.
Any fractional shares resulting from the reverse stock split were rounded up to the nearest whole share of common stock. As a result, the number of outstanding shares of common stock are expected to be reduced from about 208.1 million to about 20.8 million outstanding shares. And the authorized shares of common stock are expected to be reduced from 420 million to 42 million.
Nemaura is commercializing SugarBEAT as a non-invasive, affordable and flexible continuous glucose monitor (CGM) designed to help people with diabetes and pre-diabetics better manage their glucose levels by spending more time in range.
CEO Dr Faz Chowdhury said the company decided on the reverse split to attract a broader universe of institutional investors.
“As the world’s first non-invasive, safe, needle-free CGM, SugarBEAT is uniquely positioned to target the underserved $80 billion market for Type 2 diabetics and pre-diabetics,” Chowdhury said.
“We are further encouraged by the outlook for the business based on positive feedback from key opinion leaders and end users. We look forward to providing additional updates as we execute on our commercial strategy.”
The company’s stock recently traded up more than 5% to $0.59 a share in New York.
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