NEW YORK – Genomics-based testing firm Prenetics said Wednesday that its board of directors has approved a 1-for-15 reverse stock split of its Class A ordinary shares and Class B ordinary shares.
The reverse split, which will take effect Nov. 13, is intended to bring the company back into compliance with Nasdaq's minimum bid listing requirement of $1.00 per share. The move is subject to confirmation by the exchange.
Prenetics CEO Danny Yeung said in a statement that the firm is committed to ensuring its continued listing on the Nasdaq. He said the firm's treasury of cash and short-term assets and its strong growth prospects for its clinical genomics business position it to deliver value for shareholders. As of June 30, Prenetics had consolidated cash and short-term assets totaling $214.5 million, including $177.2 million in cash and cash equivalents.
On June 29, the Hong Kong-based firm received a notice of noncompliance from Nasdaq because its stock price had remained below $1.00 per share for 30 consecutive trading days.
Prenetics announced this summer it had forged a collaboration deal with Chinese University of Hong Kong researcher Dennis Lo on a $200 million joint venture for development of multi-cancer screening tests. Prenetics has a 50 percent equity stake in that joint venture, and it expects the first tests will become available in Hong Kong and mainland China in 2025.
Prenetics' share price was up about 1 percent at $.32 per share Wednesday in early morning trading.