STONY BROOK, NY - Applied DNA Sciences, Inc. (NASDAQ:APDN), known for its PCR-based DNA technologies, today confirmed a 1-for-20 reverse stock split of its common stock, set to take effect at the start of the day on Thursday, April 25, 2024. The split-adjusted trading on the Nasdaq Capital Market will commence with the market opening on the same day.
The reverse stock split will convert every 20 shares of the company's issued and outstanding common stock into one share, maintaining the par value at $0.001 per share. This action will reduce the number of issued and outstanding shares from roughly 17.26 million to about 863,000. The company’s total authorized shares will remain unchanged.
Proportional adjustments will be made to outstanding stock options, restricted stock units, and warrants, as well as to the number of shares available under the company's equity incentive plans. No fractional shares will be issued; shareholders will receive rounded up whole shares in lieu of any fractional shares.
The decision for the reverse stock split follows a stockholder vote on April 15, 2024, authorizing the Board of Directors to implement the split to ensure compliance with the Nasdaq's minimum bid price requirement. The company aims to maintain its listing on the Nasdaq Capital Market by meeting the $1.00 minimum bid price per share.
Applied DNA's transfer agent, Equiniti Trust Company, will provide stockholders with details regarding their stock ownership post-split. Shareholders with shares held in book-entry form or through a bank, broker, or other nominee will not need to take any action, as their accounts will automatically reflect the share consolidation.
This announcement is based on a press release statement from Applied DNA Sciences. The company operates in several business markets, including the enzymatic manufacture of synthetic DNA, molecular diagnostics and genetic testing services, and DNA-based industrial supply chain security services.
The company has recently expanded into the production of mRNA therapeutics through its acquisition of Spindle Biotech, Inc.
Investors and beneficial holders with procedural questions are encouraged to contact their respective bank, broker or nominee for further information.
InvestingPro Insights
In light of Applied DNA Sciences, Inc.'s (NASDAQ:APDN) recent announcement of a reverse stock split, investors may be keen to understand the company's financial health and market sentiment. According to InvestingPro data, APDN currently holds a market capitalization of $5.6 million, which reflects its relative size within the industry.
The company's price-to-book ratio as of the last twelve months leading up to Q1 2024 stands at 1.34, which may suggest that the stock is trading at a valuation close to its net asset value.
Still, it is important to note that APDN has experienced a significant decline in revenue, with a decrease of 53.31% over the last twelve months as of Q1 2024. This contraction is further emphasized by a quarterly revenue decline of 83.07% in Q1 2024. These figures may raise concerns about the company's current performance and future growth prospects.
From an investment analysis standpoint, two InvestingPro Tips are particularly relevant for APDN at this juncture. First, the company is trading at a low revenue valuation multiple, which may attract investors looking for potentially undervalued stocks. Second, the stock is in oversold territory according to the Relative Strength Index (RSI), which could indicate a potential rebound or at least a stabilization in stock price in the near term.
For investors seeking a more comprehensive analysis, InvestingPro offers additional insights, including 14 more InvestingPro Tips for APDN, available at https://www.investing.com/pro/APDN. Moreover, investors can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, offering a deeper dive into the company's financials and market performance.
As shareholders and potential investors assess the implications of the reverse stock split, these metrics and tips provide a more nuanced understanding of Applied DNA Sciences' market position and the challenges it faces.
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