RUTHERFORD, NJ - Glucotrack, Inc. (NASDAQ:GCTK), a medical device company specializing in diabetes care technology, has announced a 1-for-5 reverse stock split of its common stock, set to take effect at the opening of trading on Monday, May 20, 2024. This corporate action will reduce the number of outstanding shares from approximately 27.4 million to about 5.5 million, with the company's authorized shares also decreasing from 500 million to 100 million.
The reverse stock split, approved by the company's Board of Directors on April 30, 2024, following a stockholder vote on April 26, aims to bring Glucotrack's stock in line with the Nasdaq Capital Market's minimum bid price requirement. It also seeks to potentially make the stock more appealing to institutional investors. The stock will continue to trade under the ticker symbol GCTK, with a new CUSIP number of 45824Q606.
No fractional shares will be issued as a result of the reverse split. Instead, shareholders entitled to fractions of a share will receive a cash payment based on the average closing sales prices of the common stock on Nasdaq for the five days preceding the effective date, adjusted post-split.
The company's transfer agent, Equiniti Trust Company LLC, will handle the exchange process and provide shareholders with statements reflecting their post-split holdings. Those holding shares through brokers or other nominees will see their accounts automatically adjusted.
Glucotrack is concurrently developing an implantable continuous blood glucose monitoring system designed to last over two years without the need for on-body wearables or frequent calibration.
This restructuring move is part of Glucotrack's broader strategy to maintain compliance with Nasdaq's listing standards and to potentially broaden its investor base. The company has cautioned that while the reverse stock split is intended to benefit the company's market position, there are no guarantees that it will achieve the desired Nasdaq compliance or attract new investment.
InvestingPro Insights
In light of Glucotrack's recent announcement of a reverse stock split, investors may be evaluating the company's financial health and market performance. According to InvestingPro data, Glucotrack holds a market capitalization of $13.16 million USD. Despite the challenges faced by the company, including a negative operating income of -$7.1 million USD for the last twelve months as of Q4 2023, Glucotrack's stock has demonstrated significant resilience with a 1-month price total return of 30.98% and an even more impressive 3-month price total return of 138.14%.
For those considering the stock's future course, InvestingPro tips highlight that Glucotrack does not pay a dividend to shareholders and has not been profitable over the last twelve months. Nevertheless, the company has shown a strong return over the last month and the previous three months, suggesting a potential turnaround in investor sentiment. This could be a factor to consider when assessing the impact of the reverse stock split on the company's appeal to institutional investors.
For investors seeking more in-depth analysis, there are additional InvestingPro tips available that could provide further insight into Glucotrack's financials and market performance. These tips can be accessed through the InvestingPro platform, and readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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