CERo Therapeutics Executes 1-for-20 Reverse Stock Split on June 13, Reducing Outstanding Shares

CERo Therapeutics has announced a 1-for-20 reverse stock split effective June 13, 2025. This will reduce outstanding common shares from approximately 10.32 million to 516,092. The stock will begin trading on a split-adjusted basis on Nasdaq at market open on June 13.

CERo Therapeutics Holdings, Inc. (Nasdaq: CERO) has announced a 1-for-20 reverse stock split effective June 13, 2025. This move will significantly reduce the number of outstanding common shares from approximately 10.3 million to about 516,092. The stock will begin trading on a split-adjusted basis on Nasdaq at market open on June 13, 2025.

The reverse stock split will combine every twenty shares into one, reducing the total number of shares by a factor of twenty. This action is designed to improve the liquidity and trading of the stock, potentially making it more appealing to institutional investors. Additionally, it may help increase the per-share price, which could attract new investors and stabilize the company's market position.

The reverse stock split is part of CERo's strategy to comply with Nasdaq continued listing standards. The company focuses on advancing engineered T cell therapeutics for cancer treatment, particularly with its novel CER-T cells designed to improve upon existing therapies. The announcement also includes a caution about forward-looking statements regarding the company’s future plans and risks.

Potential Positives
The implementation of a 1-for-20 reverse stock split is expected to increase the per-share price of the Company’s Common Stock, potentially attracting new investors and stabilizing its market position. The reduction of outstanding shares from approximately 10.3 million to about 516,092 may improve the liquidity and trading of the stock, making it more appealing for institutional investors.

Potential Negatives
The reverse stock split may signal financial distress, as companies often undertake such measures to boost their stock price after experiencing significant declines. The substantial reduction in the number of outstanding shares could lead to concerns among shareholders about liquidity and the potential for increased volatility in the stock price. Investors may view the reverse stock split negatively, fearing it reflects underlying operational or financial issues within the company, which could impact investor confidence.

The reverse stock split ratio approved by CERo is one-for-twenty (1:20). The number of outstanding shares will be reduced from approximately 10,321,839 to about 516,092 shares. No fractional shares will be issued; shares will round up to the next whole share for stockholders.

References:
[1] https://www.nasdaq.com/articles/cero-therapeutics-holdings-inc-announces-one-twenty-reverse-stock-split-effective-june-13