FREEHOLD, N.J. - Avalon GloboCare Corp. (NASDAQ: ALBT), a developer of precision diagnostics and laboratory services, announced a 1-for-15 reverse stock split of its common shares set to take effect on October 28, 2024. The action is intended to bring the company's stock back into compliance with the Nasdaq Capital Market's minimum bid price requirement.
Upon the effectiveness of the reverse split, the total number of Avalon's outstanding common shares will decrease from approximately 16.0 million to about 1.1 million. The company's shares will continue trading on the Nasdaq under the ticker symbol ALBT but will begin trading on a split-adjusted basis when the market opens on the specified date. Additionally, the shares will have a new CUSIP number, 05344R302, post-split.
David Jin, M.D., Ph.D., President and CEO of Avalon GloboCare, stated that the reverse split is a strategic move aimed at maintaining the company's listing status on the Nasdaq. He emphasized that the decision supports Avalon's long-term growth and success, and the company remains focused on delivering shareholder value through its innovative diagnostic and laboratory services.
Avalon GloboCare provides a range of diagnostic tests, including drug testing, toxicology, and various bloodwork and anatomic pathology services. The company aims to establish a leading role in diagnostic testing innovation, leveraging proprietary technology for genetics-driven results.
This announcement is based on a press release statement from Avalon GloboCare. The company's forward-looking statements are subject to various risks and uncertainties and reflect current expectations about future events based on certain assumptions. These statements are not guarantees of future performance, and actual results could differ materially from those projected. Avalon GloboCare has advised that the views expressed in the press release are as of its date and may change in the future, with no obligation to update or revise the statements.
In other recent news, Avalon GloboCare Corp. reported key outcomes from its annual meeting of stockholders, including the election of seven directors to the company's board and the approval of M&K CPAS, PLLC as the company's independent registered public accounting firm for the fiscal year ending December 31, 2024. Shareholders also approved the issuance of common stock exceeding 19.99% of the outstanding shares and a reverse stock split of the company's common stock. The number of authorized shares will decrease from 490,000,000 to 100,000,000, contingent upon the reverse stock split.
The company has also reported a change in its independent registered public accounting firm, with the dismissal of Marcum LLP and the appointment of M&K CPAS, PLLC. Despite receiving a non-compliance notice from Nasdaq due to a delay in filing its quarterly report, the company is actively working to regain compliance. Furthermore, Avalon GloboCare announced the U.S. launch of its KetoAir™ breathalyzer, a device aimed at ketogenic health management.
In other recent developments, La Rosa Holdings Corp. appointed Lourdes Felix, former CEO of BioCorRx Inc., to its Board of Directors. These are the latest developments for both Avalon GloboCare and La Rosa Holdings.
InvestingPro Insights
Avalon GloboCare's decision to implement a reverse stock split comes amid challenging financial circumstances, as revealed by recent InvestingPro data. The company's market capitalization stands at a modest $3.23 million, reflecting its current struggles. This move to maintain Nasdaq listing compliance is crucial, given that InvestingPro Tips indicate the stock "has taken a big hit over the last six months" and has "fallen significantly over the last year."
The company's financial health appears precarious, with InvestingPro data showing a negative revenue of $7.53 million for the last twelve months as of Q2 2024, and a staggering revenue decline of 719.79% over the same period. These figures align with the InvestingPro Tip that Avalon is "not profitable over the last twelve months."
Despite these challenges, there's a glimmer of hope. An InvestingPro Tip notes a "significant return over the last week," with data showing a 14.66% price return in the past week. This recent uptick could potentially be linked to anticipation of the reverse split announcement.
Investors considering Avalon GloboCare should be aware that InvestingPro offers 7 additional tips for ALBT, providing a more comprehensive analysis of the company's financial situation and market performance. These insights could be valuable in assessing the potential impact of the reverse split on Avalon's future prospects.
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