In a decisive move, Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) shareholders have given the green light for a reverse stock split and other key proposals during a special meeting held on Wednesday. The biotech firm, operating under the banner of 03 Life Sciences, announced the approval of a reverse stock split at a ratio of one-for-forty, set to take effect on August 20, 2024.
The reverse stock split, which was one of three main items on the agenda, received overwhelming support with over 4.7 billion votes in favor, a mere 61.7 million against, and around 1.6 million abstentions. This action will consolidate every forty shares of the company's issued and outstanding common stock into one share, without altering the par value per share.
Consequently, the number of shares reserved under the company's equity plans and the number of shares underlying outstanding awards will also be proportionately reduced.
Additionally, shareholders approved the Officer Exculpation Proposal, which seeks to permit officer exculpation, and the Charter Updates Proposal, which involves updating the company's Amended and Restated Certificate of Incorporation to remove obsolete provisions related to its merger with Soaring Eagle Acquisition Corp. and its domestication process.
Following the reverse stock split, the company's Class A common stock will continue to trade on the New York Stock Exchange under the ticker "DNA," with a new CUSIP number 37611X209. In lieu of issuing fractional shares resulting from the reverse stock split, registered shareholders of Class A common stock, all shareholders of Class B common stock, and all shareholders of Class C common stock will receive a cash payment.
The company's warrants, which permit the purchase of Class A common stock, will also be adjusted accordingly. Post-split, the exercise price to purchase one share of Class A common stock will be $460.00, or $11.50 per warrant, with each warrant representing one-fortieth of one share of Class A common stock.
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