AquaBounty has called on shareholders to approve a ‘reverse stock split’.
Land-based salmon producer AquaBounty is considering a reverse stock split to boost its dwindling share price, which currently stands at 26 cents, the company announced last week.
The move comes as AquaBounty faces potential delisting from the Nasdaq Stock Market, a threat that could further plunge its stock price.
The firm, known for its genetically engineered Atlantic salmon and plans to establish multiple recirculating aquaculture system (RAS) facilities, was first notified on Oct. 31, 2022, of potential delisting if its stock didn’t surpass $1 by May 1, 2023.
Read more: AquaBounty plans to take ‘any reasonable measure’ to stay on Nasdaq after a warning from the exchange
Although AquaBounty missed that deadline, Nasdaq granted an extension until Oct. 30. Responding, AquaBounty vowed to adopt any reasonable measures to maintain its position on the market.
Delisting could substantially hamper AquaBounty’s ability to raise capital or pursue restructuring efforts. While the company’s operations largely depend on attracting more capital, there’s no guarantee of acquiring the necessary funds.
In June, rising costs prompted AquaBounty to pause its salmon farm construction in Pioneer, Ohio. To lessen delisting threats, the firm has suggested reducing its authorised shares from 150 million to 75 million. A reverse stock split would consolidate shareholders’ existing stock into fewer shares, affecting the stock’s price, not the firm’s actual value.
After not meeting the Nasdaq’s $1 minimum bid price for 30 straight business days, AquaBounty was given two 180-day extensions to comply. Yet, as of Aug. 21, the company still falls short. Failing to meet this mandate by the end of the second window could result in its delisting.
AquaBounty’s stock briefly surpassed the $1 mark in late January 2023 but couldn’t maintain that level to satisfy Nasdaq’s conditions. Since then, the stock has continued to trend downward.
