WOBURN, Mass. - iSpecimen Inc. (NASDAQ:ISPC), a company that operates an online marketplace for medical research biospecimens, has announced a reverse stock split of its common stock at a ratio of 1-for-20, set to take effect at market close on September 13, 2024. The split-adjusted shares are expected to begin trading on the Nasdaq Capital Market on the morning of September 16, 2024, under the existing ticker symbol "ISPC" and the new CUSIP number 45032V207.
The reverse stock split will consolidate every 20 shares of issued and outstanding common stock, as well as treasury shares, into one share of common stock at the same par value of $0.0001 per share. This action follows the approval of the amendment to the Company's Fourth Amended and Restated Certificate of Incorporation by stockholders during the annual meeting on July 19, 2024, and the subsequent determination of the final ratio by the Board on August 19, 2024.
Consequent to the reverse stock split, adjustments will be made to the per share exercise price and the number of shares issuable upon the exercise of all outstanding stock options and warrants. Similar adjustments will be applied to the number of shares of common stock issuable upon the vesting of restricted stock units and the shares reserved for issuance under the Company's stock incentive plans. Fractional shares resulting from the split will be rounded up to the nearest whole share.
The primary goal of this corporate action is to elevate the per share trading price of iSpecimen's common stock, aiming to appeal to certain institutional and other investors and to satisfy Nasdaq's minimum bid price requirement for continued listing.
Broadridge Corporate Issuer Solutions, LLC will serve as the exchange agent for the reverse stock split. Stockholders holding shares electronically in book-entry form are not required to take any action to receive post-split shares. However, stockholders of record will receive information from Broadridge about the process for exchanging their shares.
iSpecimen's online marketplace facilitates the procurement of human biospecimens by connecting scientists from various organizations with healthcare providers. This press release is based on a statement from iSpecimen and contains forward-looking statements regarding future events, which are subject to risks and uncertainties.
In other recent news, iSpecimen Inc. reported a decrease in Q1 2024 revenue, falling to $2.3 million from $3 million in Q1 2023, due to a 39% decrease in specimen count. However, through strategic spending cuts and the successful implementation of the Next-Day Quotes Program, the company managed to reduce its quarterly cash burn. The company also highlighted a pipeline of new business opportunities worth approximately $1.5 million, indicating potential for future growth.
In other recent developments, iSpecimen announced the resignation of Andrew L. Ross as a director of the company and Benjamin Bielak, the Chief Information Officer and Secretary. The company also elected two Class III directors, Tracy Curley and Elizabeth A. Graham, in its annual meeting of stockholders.
Additionally, shareholders approved a proposal to amend the company's Fourth Amended and Restated Certificate of Incorporation, allowing a reverse stock split of iSpecimen's common stock. The company has also relocated to a new office space in Woburn, MA, marking a significant change in its physical footprint.
Furthermore, iSpecimen has been focusing on technological advancements and improving the quality of its supplier network by ending contracts with lower-performing suppliers. The company ended the quarter with approximately $2.6 million in cash and cash equivalents, planning to continue adding customers and suppliers to increase revenues while managing expenditures and expanding its capabilities. These are the recent developments within iSpecimen Inc.
InvestingPro Insights
As iSpecimen Inc. (NASDAQ:ISPC) prepares for its reverse stock split, current financial metrics and analyst insights provide a nuanced view of the company's market position. With a market capitalization of $3.17 million, iSpecimen is a small-cap company that operates within the niche market of medical research biospecimens. Despite the challenges faced, the company holds an interesting trait as it possesses more cash than debt on its balance sheet, which might offer some financial flexibility in its operations.
InvestingPro Data reveals that iSpecimen's revenue for the last twelve months as of Q2 2024 stands at $10.51 million, with a notable quarterly revenue growth of 76.21%. This growth indicates a potential for expansion and scaling of operations, which could be significant for potential investors. However, it's important to note that the company is not profitable over the last twelve months and is quickly burning through cash, which is reflected in the negative operating income margin of -97.53% for the same period.
The stock price has experienced significant volatility, with a 1-year price total return of -63.94%, underscoring the risks associated with investing in such a volatile market. This is further emphasized by the fact that the company does not pay a dividend to shareholders, which might deter income-seeking investors.
For those interested in a deeper dive into iSpecimen's financial health and future prospects, there are additional InvestingPro Tips available on the site. As of the latest update, there are six more InvestingPro Tips that can provide further insights into iSpecimen's operations and stock performance, which could be invaluable for making informed investment decisions.
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