NEW YORK – Bionano Genomics said on Friday afternoon that the company is executing a 1-for-10 reverse stock split of its issued and outstanding common stock. The move will take effect at 5 p.m. Eastern Daylight Time on August 4, and the company's common stock will begin trading on a split-adjusted basis commencing upon market open on Aug. 7.
As a result of the reverse split, each 10 shares of the Bionano's issued and outstanding common stock will be automatically combined and converted into one issued and outstanding share of common stock, par value of $0.0001 per share, the company said.
Bionano said has chosen American Stock Transfer & Trust Company to act as exchange agent for the reverse stock split.
Bionano previously told investors that the closing price of its common stock was below $1.00 for the 10 consecutive business days between April 17 and April 28, reaching a low of $.68 per share on April 21.
Seeking approval for a reverse stock split of its common stock in May, Bionano President and CEO Erik Holmlin assured investors that the proposal "is not a sign of distress for Bionano" but rather "a mechanism to enable management to prudently raise capital in support of our long-term strategy."