SAN DIEGO - Singular Genomics Systems, Inc. (NASDAQ:OMIC), a biotechnology firm specializing in next-generation sequencing and spatial multiomics technologies, announced a 1-for-30 reverse stock split scheduled to take effect on June 26, 2024, at 12:01 a.m. Eastern Time. The move is aimed at ensuring compliance with the Nasdaq Capital Market's minimum bid price requirement for continued listing.
The company's stock will commence trading on a split-adjusted basis under the current ticker symbol "OMIC" once the market opens on the specified date. This corporate action follows approval from Singular Genomics' shareholders at the Annual Meeting held on May 29, 2024, with the final ratio determined by the Board of Directors.
Singular Genomics plans to file an amendment to its certificate of incorporation with the Delaware Secretary of State around June 25, 2024.
While the reverse stock split will not alter the number of authorized common stock shares, which remains at 400 million, nor the par value, set at $0.0001 per share, it will reduce the number of outstanding common shares from approximately 74.7 million to about 2.5 million. No fractional shares will be issued; instead, shareholders entitled to a fraction will receive a rounded-up whole share.
The reverse split will not affect the shares of the company's Series A Preferred Stock, which will remain at 2,500 shares but will undergo a proportional conversion ratio adjustment. Similarly, equity-based awards and other equity rights will be adjusted accordingly.
Continental Stock Transfer & Trust Company will act as the exchange agent for the reverse stock split. Stockholders will receive information regarding their stock ownership post-split, and those holding shares through banks, brokers, or nominees will see their positions automatically adjusted, subject to individual processes of these entities.
This strategic step by Singular Genomics is part of its efforts to maintain its listing on the Nasdaq and reflects the company's commitment to meeting the exchange's requirements. The information provided in this article is based on a press release statement from Singular Genomics Systems, Inc.
In other recent news, Singular Genomics Systems Inc. reported its financial results for the first quarter of 2024, revealing a net loss of $25 million despite generating $0.4 million in revenue from six G4 instruments.
The company is shifting its focus toward spatial sequencing using its G4X spatial sequencer, aiming to tap into the growing demand in the sequencing field. With a strong balance of $150.7 million in cash, cash equivalents, and short-term investments, Singular Genomics is set to initiate its G4X early access program and expand technology access services.
In addition to this, Singular Genomics is doubling its gene panel offering from 150 to 300 genes, enhancing the company's product line. The company maintains confidence in the unique features and intellectual property protection of the G4X platform, which it believes will provide a competitive edge. These recent developments indicate the company's strategic pivot and its endeavors to strengthen its position in the market.
InvestingPro Insights
In light of Singular Genomics Systems, Inc.'s recent announcement of a reverse stock split, investors may be seeking deeper insights into the company's financial health and market performance.
According to InvestingPro data, the company holds a market capitalization of approximately $25.18 million USD. Despite a substantial year-over-year revenue growth of 52.95% as of Q1 2024, Singular Genomics has been facing challenges, as evidenced by a decline in quarterly revenue growth of -48.78% in the same period.
The company's financial metrics reveal a negative gross profit margin of -41.49%, indicating that it incurs more costs than revenue in its production process. This is aligned with one of the InvestingPro Tips, which points out that Singular Genomics suffers from weak gross profit margins. Moreover, the company's P/E Ratio stands at -0.24, which, when adjusted for the last twelve months as of Q1 2024, slightly worsens to -0.25, suggesting that the market has concerns about the company's profitability.
Another InvestingPro Tip for Singular Genomics highlights that the company is not expected to be profitable this year, which is consistent with the negative earnings per share figures reported. The company's stock performance has been underwhelming, with a 1-month price total return of -20.49% and a 1-year price total return of -59.81% as of the referenced date in 2024. These metrics may be of particular interest to investors considering the impact of the reverse stock split on the company's future market position.
For those interested in further analysis and additional InvestingPro Tips, investing.com provides a comprehensive suite of tools and insights. Currently, there are 9 additional InvestingPro Tips available for Singular Genomics, which can be accessed at: https://www.investing.com/pro/OMIC. Investors can take advantage of these insights and more by using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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