WOBURN, Mass. - Yield10 Bioscience, Inc. (NASDAQ:YTEN), an agricultural bioscience company, has announced a 1-for-24 reverse stock split of its common stock, set to take effect after market close on Thursday, May 2, 2024.
This move follows approval from the company's shareholders at a special meeting on April 26, 2024. The company's common stock will commence trading on a split-adjusted basis on the Nasdaq Capital Market from Friday, May 3, 2024.
The reverse stock split aims to raise the per-share trading price of the company’s common stock, helping to ensure it continues to meet Nasdaq's listing requirements. The number of outstanding shares will be reduced from approximately 15.4 million to about 642,539 shares. The authorized share count will remain at 60 million.
Yield10 Bioscience focuses on developing sustainable seed products through the genetics of the oilseed Camelina sativa, known as Camelina. The company's products are intended for various markets, including renewable diesel, sustainable aviation biofuels, and nutraceutical applications.
Upon the reverse stock split's effectiveness, every 24 shares of issued and outstanding common stock will be converted into one share. The stock split will not alter the common stock's rights or preferences. Stockholders will not receive fractional shares but will instead be compensated with cash based on the closing price of Yield10 common stock on May 2, 2024, post-adjustment.
The company's transfer agent, Equiniti Trust Company, LLC, will serve as the exchange agent for the reverse stock split. Registered stockholders need not take any action to receive post-split shares. Those owning shares through brokers or other nominees will see their positions automatically adjusted.
Proportional adjustments will also be made to Yield10's outstanding stock options, warrants, and restricted stock units, as well as to the number of shares issued and issuable under the company's equity compensation plans.
This strategic move is part of Yield10’s efforts to maintain its compliance with Nasdaq listing standards. The company's common stock will continue to trade under the ticker symbol "YTEN," with a new CUSIP number of 98585K854 following the split.
The information in this article is based on a press release statement from Yield10 Bioscience, Inc.
InvestingPro Insights
As Yield10 Bioscience, Inc. (NASDAQ:YTEN) undergoes a reverse stock split to maintain its Nasdaq listing status, investors and stakeholders are keenly observing the company's financial health and market performance. The latest data from InvestingPro provides a snapshot of the company's current financial situation and market position.
InvestingPro Data indicates a challenging financial landscape for Yield10 Bioscience. The company's market capitalization stands at a modest 3.63 million USD, reflecting its small size within the industry. A significant revenue decline of 86.67% in the last twelve months as of Q4 2023 underscores the difficulties the company faces in generating sales. Moreover, with a gross profit margin of -13771.67% for the same period, it's evident that Yield10 is grappling with cost management and profitability issues.
Two notable InvestingPro Tips highlight further concerns: Yield10 may have trouble making interest payments on its debt, and analysts do not anticipate the company will be profitable this year. These insights suggest that the reverse stock split is not only a strategic move to comply with Nasdaq requirements but also a reflection of deeper financial challenges.
However, it's not all bleak for Yield10. Analysts anticipate sales growth in the current year, which could signal a potential turnaround for the company if it can capitalize on its developments in sustainable agriculture. Additionally, the company's stock price has shown some resilience with a 0.6% return over the past week, despite a significant 92.06% drop over the past year.
For readers interested in a deeper analysis, there are 16 additional InvestingPro Tips available, which can provide further insights into Yield10's market performance and financial health. Access these tips by visiting https://www.investing.com/pro/YTEN and consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, offering a more comprehensive investment analysis tool.
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