SAN DIEGO - Telesis Bio Inc. (NASDAQ:TBIO), a provider of automated synthesis technologies for therapeutic discovery, announced today a reverse stock split. The 1-for-18 split is scheduled to take effect on Thursday, May 9, 2024, as the company aims to comply with Nasdaq's minimum bid price requirement.
The reverse stock split was approved by shareholders at the Annual Meeting on May 1, 2024, and will reduce the number of outstanding common shares from about 30.1 million to approximately 1.7 million. Despite this change, the par value per share of $0.0001 will remain unchanged, and the total authorized common stock will stay at 100 million shares.
Stockholders owning fractional shares as a result of the split will have their holdings rounded up to the nearest whole number. Adjustments will also be made to the terms of the company's preferred stock, outstanding warrants, stock options, equity awards, and shares issuable under equity incentive plans to reflect the consolidation.
The reverse stock split will not impact the number of authorized or outstanding shares of preferred stock. Proportional adjustments to the conversion price of preferred stock ensure that the number of common shares issuable upon conversion remains consistent with the reduced total of common stock.
Telesis Bio's transfer agent, Equiniti Trust Company, LLC, will provide stockholders with information about their post-split share ownership. Those holding shares in book-entry form or through a bank, broker, or other nominee will see their accounts automatically adjusted to reflect the new share count.
The company is known for its contributions to synthetic biology, including the Gibson Assembly® method and the BioXp® system, which streamline the synthesis of DNA and RNA for a variety of applications in medicine, biologics drug discovery, and more.
This article is based on a press release statement from Telesis Bio Inc.
InvestingPro Insights
As Telesis Bio Inc. (NASDAQ:TBIO) prepares for its reverse stock split to meet Nasdaq's minimum bid price requirement, investors may be evaluating the company's financial health and market performance.
According to InvestingPro data, Telesis Bio's market capitalization stands at a modest $9.64 million, reflecting the challenges small-cap companies often face in maintaining market value. The company's Price / Book ratio, as of the last twelve months ending Q4 2023, is at a high 42.63, which typically suggests a premium valuation relative to the company's net asset value.
Moreover, Telesis Bio's recent stock price movements have been characterized by significant volatility, with a 1-month price total return showing a decrease of 25.0%. This could be indicative of market uncertainty or investor concerns about the company's future. Despite this, Telesis Bio's liquid assets exceed its short-term obligations, which may provide some reassurance to investors worried about the company's ability to meet its immediate financial liabilities.
Turning to InvestingPro Tips, it's noted that the company is quickly burning through cash and analysts do not anticipate Telesis Bio will be profitable this year. These insights underscore the importance of due diligence for potential investors. For those seeking a more in-depth analysis, InvestingPro offers additional tips on the company's financial health and future outlook. With the use of the coupon code PRONEWS24, readers can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, which includes access to a total of 12 InvestingPro Tips for Telesis Bio Inc.
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