Impact Biomedical Issues Correction On Merger Exchange Ratio As Reverse Stock Split Takes Effect

(RTTNews) - Impact Biomedical Inc. (IBO) has issued a corrected update to its previously released merger announcement, clarifying that one Zoar Limited share for each Impact share held immediately prior to the merger's effective time after giving effect to the reverse stock split, replacing the earlier misstatement of a 1-for-4 exchange ratio.

The company confirmed that no other changes were made to the original merger press release.

The Board of Directors has approved a 1-for-12.62 reverse stock split, which will become effective at 12:01 a.m. Eastern Time on September 23, 2026, with trading on the NYSE American continuing under the ticker IBO and transitioning to a new CUSIP number on the same day.

The split will reduce Impact's outstanding common shares from approximately 107.8 million to 8.54 million, subject to rounding adjustments, with fractional shares rounded up to the nearest whole share to ensure uniform treatment across all holders.

Impact Biomedical stated that the reverse split is intended to support the company's efforts related to its proposed business combination with Zoar Limited and its continued-listing objectives on the NYSE American, while emphasizing that the action does not guarantee compliance with listing standards, approval of any listing application, or completion of the merger.

The correction follows updated disclosures indicating that the reverse split will be executed at a ratio of 1-for-12.62, a structural adjustment designed to meet listing and transactional requirements associated with the merger process.

The company emphasized that the reverse split is a procedural step and not guarantee compliance with listing standards, approval of any listing application, or completion of the merger.

Shareholders previously authorized a reverse split range of 1-for-12.48 to 1-for-50, enabling management to implement the final ratio at its discretion.

Upon closing of the proposed merger, Impact shareholders are expected to receive one Zoar Limited share for each Impact share held immediately prior to the effective time, following the reverse split adjustment. The combined company is expected to operate as a pharmaceutical manufacturer focused on active pharmaceutical ingredients, intermediates, formulations, and orphan drug development, expanding the scope of Impact's intellectual property portfolio through Zoar's global infrastructure.

Zoar Ltd has filed a Form F-4 registration statement with the SEC containing a preliminary proxy statement/prospectus, and a definitive version will be mailed to Impact shareholders once the registration statement is declared effective, ahead of a shareholder vote on the business combination.

Impact shareholders are encouraged to review the proxy materials once available, as they will contain detailed information regarding the merger structure, PubCo, Zoar Labs, and the combined entity's governance and operations.

Impact Biomedical continues to advance its strategic transaction toward the proposed merger, with the corrected exchange ratio and effective split aligning its capital structure with the requirements of the transaction and upcoming regulatory milestones.

IBO has traded between $0.37 and $0.83 over the past year. The stock closed Monday's trading at $0.48, up 5.19%.