Rigel (NASDAQ:RIGL) Pharmaceuticals, Inc. (NASDAQ:RIGL), a biotechnology company focused on developing and commercializing innovative therapies, has announced a one-for-10 reverse stock split of its common stock. The action, effective as of 12:01 a.m. Eastern Time today, was approved by the company's stockholders on May 24, 2024, and by its Board of Directors on June 15, 2024.
The reverse stock split was implemented to increase the market price per share of Rigel's common stock, with the aim of meeting the continued listing requirements of The Nasdaq Stock Market LLC. Following the reverse split, the common stock began trading on a split-adjusted basis today under a new CUSIP number, 766559702.
As a result of the reverse stock split, every ten shares of Rigel's common stock were combined into one share of common stock. This action has reduced the number of shares of common stock outstanding and is expected to proportionally increase the market price per share of Rigel's common stock. No fractional shares will be issued in connection with the reverse stock split. Shareholders who would have been entitled to receive a fractional share will instead receive a cash payment, calculated based on the closing price of Rigel's common stock on the last trading day prior to the effective date of the reverse stock split.
The company's filings with the Secretary of State of the State of Delaware included an amendment to its Amended and Restated Certificate of Incorporation to effectuate the reverse stock split. The amendment was filed as Exhibit 3.1 to the company's Current Report on Form 8-K.
This strategic move by Rigel Pharmaceuticals is part of its efforts to comply with the trading requirements set by the stock exchange and to potentially broaden its investor base. The reverse stock split does not alter the company's market capitalization or the intrinsic value of its shares. Information regarding the reverse stock split is based on a press release statement.
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