1:20 & 1:7 Share Splits In Focus: Two Major Stock Splitting In 2-Days; Do You Own Any?

From March 14 to March 15, the last two trading sessions of this week will see a host of listed companies sub-dividing their shares. In the two upcoming sessions, among renowned stock splits to watch out for are ReWalk Robotics splitting into a 1:7 ratio, and Outlook Therapeutics splitting into a massive 1:20 ratio. These stocks are listed on the tech-heavy Nasdaq.

Outlook Therapeutics Stock Split:

Outlook Therapeutics is a biopharmaceutical company working to achieve FDA approval for the first ophthalmic formulation of bevacizumab for the treatment of retinal diseases. On March 12, the company declared a reverse stock split of a 1-for-20 ratio of its outstanding shares of common stock which will come into effect from March 14, 2024.

The reverse stock split is part of the Company's plan to regain compliance with the minimum bid price requirement for continued listing on The Nasdaq Capital Market.

As per the official statement, at the effective time of the reverse split, every 20 issued and outstanding shares of the Company's common stock will automatically be combined into one issued and outstanding share of the Company's common stock without any change in the par value per share.

However, fractional shares will not be issued in connection with the reverse stock split. Stockholders who would otherwise be entitled to receive a fractional share will be entitled to receive a cash payment.

The reverse stock split will reduce the number of issued and outstanding shares of the Company's common stock from approximately 260.3 million to approximately 13.0 million.

Outlook is working to achieve FDA approval for the launch of ONS-5010/ LYTENAVA, as the first FDA-approved ophthalmic formulation of bevacizumab for use in retinal indications, including wet AMD, DME and BRVO. If ONS-5010 ophthalmic bevacizumab is approved, Outlook Therapeutics expects to commercialize it as the first and only FDA-approved ophthalmic formulation of bevacizumab for use in treating retinal diseases in the United States, United Kingdom, Europe, Japan, and other markets.

ReWalk Robotics Stock Split:

ReWalk is a global market leader delivering life-changing solutions to revolutionize what is possible in rehabilitation, recovery, and the pursuit of life's passions in the face of physical limitation or disability.

On March 13, the company announced a stock of 1-for-7 reverse split of its ordinary shares which will turn ex-split on March 15.

The Company believes that implementing the reverse split will assist in its efforts to meet the Nasdaq's continued listing standards and to have its ordinary shares remain listed and traded on the Nasdaq. In particular, the Company expects the reverse split to increase the per share price and bid price of its ordinary shares above the minimum $1.00 per share threshold required by Nasdaq, as per the statement.

Accordingly, the company's ordinary shares are expected to begin trading on a split-adjusted basis on Friday, March 15, 2024. Notably, the reverse split will apply to the Company's outstanding warrants, including pre-funded warrants, and stock options.

Further, the reverse split will reduce the authorized and outstanding number of the Company's ordinary shares while increasing the par value of the ordinary shares in reverse proportion to the decrease in the number of authorized shares.

In its statement, ReWalk revealed that it expects to have its issued and outstanding ordinary shares decrease from approximately 60.1 million pre-split shares to approximately 8.6 million post-split shares outstanding as a result of the reverse split.

Typically, a stock split occurs when a firm issues new shares of stock and in turn lowers the current market price of its stock to a level that is proportionate to pre-split prices.

Disclaimer: The write-up highlights about the latest development in stock splits, and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on the stock mentioned. Neither, the author nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.