(RTTNews) - HCW Biologics Inc. (HCWB), a clinical-stage biopharmaceutical company, Friday announced that it has been approved for a 1-for-6 reverse stock split of the company's common stock, with par value of $0.0001, effective June 30.
The company decided to commence a reverse stock split after it received a decision letter from a Nasdaq Hearings Panel on May 29, in which a path was provided to comply with Nasdaq Listing Rule 5550(a) or the Bid Price Rule.
The main requirement of the Nasdaq letter was that the biopharma's common stock must trade above $1 per share for a period of 20 days prior to July 29. As per HCW, the stock has completed 20 trading days above $1 per share as of June 12 and has continued to trade around $1 per share since that time.
Given the panel's requirements, the reverse stock split has been initiated in order to comply with the Bid Price Rule as non-compliance would result in immediate delisting.
The common stock will be trade on Nasdaq on a reverse split-adjusted basis beginning on June 30, under the existing trading symbol HCWB.
"The reverse stock split will reduce the number of shares of common stock issued and outstanding from 9,581,079 to approximately 1,596,849 and the total authorized number of shares of Common Stock will remain at 250,000,000 shares of Common Stock and the per-share par value will remain at $0.0001 per share.", the company said in a statement.
In pre-market activity, HCWB shares were trading at $0.86, down 22.64% on the Nasdaq.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
