Nutex Health, Inc. (NASDAQ:NUTX), a company specializing in business services within the healthcare sector, has announced a reverse stock split of its common stock at a 1-for-10 ratio, effective as of the close of business on Tuesday. The reverse stock split, which follows a previous 1-15 split effective April 10, 2024, was approved by stockholders on June 17, 2024, and is intended to consolidate shares and potentially improve the marketability and liquidity of Nutex Health's stock.
The reverse stock split reduced the number of shares of issued and outstanding common stock by combining every ten shares into one share, with the par value remaining unchanged. This action does not affect any stockholder's ownership percentage in the company, except for minor adjustments due to the rounding up of fractional shares. Stockholders who would otherwise hold a fractional share will receive one whole share in lieu of such fraction.
As a result of the reverse stock split, adjustments will be made to the exercise prices and number of shares issuable under the company's equity incentive plans, along with the number of shares underlying outstanding equity awards. The total number of authorized shares of Nutex Health remains unchanged at 950,000,000.
Following the reverse stock split, Nutex Health's common stock continued to trade on the Nasdaq Stock Market under the existing ticker symbol "NUTX," with a new CUSIP number of 67079U306 from Wednesday. Shareholders owning shares through brokers, banks, trusts, or other nominees saw their holdings automatically adjusted to reflect the reverse stock split in accordance with their brokers' procedures, without the need for any direct action on their part.
The reverse stock split was executed through a Certificate of Amendment to Nutex Health's Second Amended and Restated Certificate of Incorporation filed with the Delaware Secretary of State. Transfer Online, the company's transfer agent, is managing the exchange process for the reverse stock split.
In other recent news, Nutex Health Inc. has been facing a potential delisting from Nasdaq due to non-compliance with the exchange's minimum bid price requirement. The healthcare company appealed the decision and a hearing is scheduled to take place later this year. In an attempt to regain compliance, Nutex Health's Board of Directors have approved a reverse stock split, subject to shareholder approval.
In parallel, Nutex Health has demonstrated strong growth with a 20% increase in revenue and a 5.3% rise in same-facility visits in the first quarter. Its Adjusted EBITDA also saw a significant year-over-year increase of 88%, reaching $4.6 million. However, Benchmark has lowered its price target for Nutex Health shares from $6.00 to $5.00, while maintaining a Buy rating on the stock.
These are recent developments that investors should note. Despite potential regulatory challenges with Nasdaq, Nutex Health's financial position appears stable with $30 million in cash reserves.
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