Organovo Implements 1-for-12 Reverse Stock Split to Stay Nasdaq-Listed!
Effective Date and Trading Details
Organovo Holdings, Inc. (ONVO) will implement a 1-for-12 reverse stock split on March 20, 2025, after market close. Starting March 21, 2025, ONVO shares will trade on a split-adjusted basis under the same Nasdaq ticker (ONVO), but with a new CUSIP number (68620A302).
What Does This Means for Shareholders?
Every 12 existing shares will be combined into 1 new share. As a result, the total number of outstanding shares will be reduced from 21.4 million to 1.8 million. The company’s authorized shares will remain unchanged, and the par value will stay at $0.001 per share.
Handling of Fractional Shares
Shareholders who would end up with fractional shares will not receive partial shares. Instead, they will be paid cash based on ONVO’s closing price on March 19, 2025. The company will also adjust its equity incentive plans to reflect the new share structure.
Reason for the Reverse Split
Stockholders had previously approved a reverse split ratio between 1-for-5 and 1-for-20 during a meeting in November 2024. On March 6, 2025, the board finalized the 1-for-12 ratio to help the company comply with Nasdaq’s $1.00 minimum bid price requirement.
Current Stock Performance
As of now, ONVO shares are trading at $0.2732, down 32.6% on the Nasdaq Capital Market.
FAQs on Organovo’s 1-for-12 Reverse Stock Split
1. What is a reverse stock split, and why is Organovo doing it?
A reverse stock split reduces the number of outstanding shares by combining multiple shares into one. Organovo is implementing a 1-for-12 reverse split to help its stock price meet Nasdaq’s $1.00 minimum bid price requirement.
2. When will the reverse stock split take effect?
The reverse stock split will take effect at 5:00 p.m. ET on March 20, 2025. ONVO shares will begin trading at the new adjusted price on March 21, 2025.
3. How will this affect my shares?
For every 12 shares you own, you will receive 1 new share. However, the total value of your investment will remain the same, except for normal market fluctuations.
4. What happens to fractional shares?
Fractional shares will not be issued. Instead, shareholders who would receive a partial share will get a cash payment based on ONVO’s closing stock price on March 19, 2025.
5. Will the stock symbol or CUSIP number change?
ONVO will keep its Nasdaq ticker symbol (ONVO), but its CUSIP number will change to 68620A302 after the split.
