On July 6, 2022 Avalo Therapeutics, Inc. (Nasdaq: AVTX) reported a one-for-twelve reverse stock split of the Company’s common stock, par value $0.001, which will be effective at 5:00 pm Eastern Time tomorrow, July 7, 2022 (Press release, Avalo Therapeutics, JUL 6, 2022, View Source [SID1234616533]). The Company’s common stock will trade on the Nasdaq Capital Market on a split-adjusted basis beginning on July 8, 2022, under the Company’s existing trading symbol "AVTX".
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The Company is implementing the reverse stock split as planned to increase the per share price of its common stock to regain compliance with the listing requirements of the Nasdaq Capital Market. The new CUSIP number following the reverse stock split will be 05338F207.
The reverse stock split will affect all stockholders uniformly and will not alter any stockholder’s percentage ownership interest in the Company, except to the extent that the reverse stock split results in any of the Company’s stockholders owning a fractional share as described below.
The reverse stock split will reduce the number of shares of common stock issued and outstanding from approximately 112,868,677 to approximately 9,405,724. No fractional shares will be issued in connection with the reverse stock split. Each stockholder who would otherwise be entitled to receive a fraction of a share of the Company’s common stock will instead receive one whole share of common stock.
As of the effective date of the reverse stock split, the number of shares of common stock available for issuance under the Company’s equity incentive plans and issuable upon the exercise of stock options and warrants outstanding immediately prior to the reverse stock split will be proportionately affected by the reverse stock split. The exercise prices of the Company’s outstanding options and warrants will be adjusted in accordance with their respective terms.
There will be no change to the number of authorized shares or the par value per share.
American Stock Transfer & Trust Company, LLC ("AST") is acting as the exchange agent for the reverse stock split and will provide instructions to stockholders of record regarding the reverse stock split. AST will be issuing, automatically and without the need for stockholder action, all of the post-split shares in paperless, "book-entry" form, and AST will hold the shares in an account set up for the stockholder. Stockholders who currently hold certificates need not exchange their certificates to receive their "book-entry" accounts at AST; those current certificates do not need to be submitted to AST for exchange in order to receive the "book-entry" accounts. Those stockholders holding common stock in "street name" will receive instructions from their brokers.