22nd Century Plans Reverse Stock Split to Restore NASDAQ Compliance

22nd Century Group plans a 1-for-23 reverse stock split to regain NASDAQ compliance. The split will take effect on June 20, 2025, and reduce the number of authorized and outstanding shares proportionally. Stockholders' percentage ownership and voting power will remain largely unchanged, and options and warrants will be adjusted accordingly. The reverse split is aimed at restoring the company's NASDAQ listing.

22nd Century Group, a biotechnology company specializing in innovative stem cell therapies, has announced a 1-for-23 reverse stock split to regain compliance with NASDAQ's listing requirements. The split, scheduled to take effect on June 20, 2025, aims to restore the company's NASDAQ listing and ensure it meets the exchange's minimum bid price requirement.

The reverse stock split will reduce the number of authorized and outstanding shares proportionally. This move will not significantly alter stockholders' percentage ownership or voting power, as the company aims to maintain the current distribution of shares among shareholders. Options and warrants will be adjusted accordingly to reflect the new share structure.

The company's decision to implement a reverse stock split comes after its stock price fell below the NASDAQ minimum bid price requirement of $1.00 per share. This strategic move is part of a broader effort to strengthen the company's financial foundation and maintain access to capital markets, which are crucial for advancing its clinical programs.

The reverse stock split was approved by the company's shareholders, indicating support for management's strategy. However, some investors may view the move as a sign of financial instability, as it often signals that a company is struggling to meet its listing requirements.

For more information about the reverse stock split, stockholders can refer to the company's definitive proxy statement filed with the Securities and Exchange Commission (SEC) on April 14, 2025, which is available at www.sec.gov and on the company's website at www.investor.22ndcenturygroup.com/financials/sec-filings.

References:
[1] https://www.nasdaq.com/articles/ernexa-therapeutics-announces-1-15-reverse-stock-split-regain-nasdaq-compliance