ACTON, Mass. – Bluejay Diagnostics, Inc. (NASDAQ:BJDX), known for its Symphony diagnostic platform, today declared the initiation of a reverse stock split of its common stock at a ratio of 1-for-8. The modification is scheduled to take effect at the beginning of the trading day on June 20, 2024, on The Nasdaq Capital Market under the unchanged ticker BJDX, with a new CUSIP number of 095633400.
The reverse stock split will consolidate every eight existing shares of Bluejay common stock into one new share, without altering the par value of $0.0001 per share. This action will reduce the number of Bluejay’s outstanding shares from roughly 4.51 million to approximately 564,000. Shareholders will not receive fractional shares in the reverse split; instead, they will be compensated with cash payments for any fractional shares they would have received.
The adjustment will affect all shareholders uniformly and will not change any shareholder's percentage interest in the company's equity, except for minor alterations due to the fractional share treatment. Bluejay has appointed Continental Stock Transfer & Trust Company to manage the exchange of shares for the reverse stock split.
Shareholders holding physical certificates will be contacted with instructions to exchange their certificates, while those holding shares in book-entry form or through brokerage accounts will see the change reflected in their accounts, subject to their broker's processes.
Bluejay Diagnostics focuses on improving patient outcomes with its near-patient testing system, the Symphony System. The company's first product candidate, an IL-6 Test for sepsis triage, aims to deliver results in approximately 20 minutes to assist healthcare professionals in making quicker and more informed decisions.
The company’s press release also contains forward-looking statements regarding its plans for FDA submissions, funding operations for regulatory approval, and commercialization of its Symphony IL-6 Test. These statements are based on current expectations and projections and are subject to various risks and uncertainties that could cause actual results to differ materially.
The information for this article is based on a press release statement from Bluejay Diagnostics, Inc.
In other recent news, Bluejay Diagnostics has announced significant changes in its corporate structure. The company has terminated its contract with DLA, LLC, resulting in the departure of Frances Scally, the Interim Chief Financial Officer.
In the wake of this, Neil Dey, the President and Chief Executive Officer, has been assigned additional duties by the Board of Directors. He will now function as the principal financial and accounting officer, alongside his existing role as the principal executive officer. These recent developments have come about as Bluejay Diagnostics reevaluates its business strategy and operational management.
The reasons behind the termination of the agreement with DLA and Scally's departure have not been disclosed. As these changes unfold, investors will likely watch closely how they impact the company's financial reporting and strategic direction.
InvestingPro Insights
As Bluejay Diagnostics, Inc. (NASDAQ:BJDX) embarks on a reverse stock split to consolidate shares and potentially improve the marketability of its stock, a glance at the company's financial health and market performance reveals critical insights.
According to real-time data from InvestingPro, Bluejay's market capitalization stands at a modest $1.48 million, reflecting the size and scale of the company within the diagnostics sector. This is accompanied by a negative P/E ratio, currently at -0.15 for the last twelve months as of Q1 2024, indicating that the company is not currently profitable.
InvestingPro Tips for Bluejay suggest a mixed financial position. While the company holds more cash than debt, which is generally a positive sign of liquidity, it is also quickly burning through cash and has weak gross profit margins. Moreover, the valuation implies a poor free cash flow yield, and the company has not been profitable over the last twelve months. These factors could be crucial for investors considering the impact of the reverse stock split on their holdings.
Market performance metrics further elucidate the company's recent challenges. Bluejay's stock price has taken a significant hit, with a one-year price total return of -88.46%, and the price is currently at only 3.65% of its 52-week high. This downward trend is evident in both short-term and long-term time frames, highlighting the volatility and risk associated with this stock.
For investors seeking a deeper dive into Bluejay Diagnostics' financials and market performance, InvestingPro provides a comprehensive suite of tools and additional tips. Currently, there are nine more InvestingPro Tips available, which could offer further guidance on the potential risks and opportunities associated with BJDX. To explore these tips and gain a more nuanced understanding of Bluejay Diagnostics, visit InvestingPro. Don't forget to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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