Avinger, Inc. (AVGR) gained in the pre-market after announcing its reverse stock split in a press release. AVGR values at $3.95, gaining more than 2,094.44% compared to the closing price one day before the announcement. The stock closed at $0.24 at the end of Friday’s trading session. The stock volume traded in the previous trading session was around 1.55 million shares. The current market cap of the company is about $350.06 million.
AVGR Reverse Stock Split
Avinger, Inc. (AVGR) announced yesterday its 1 for 20 reverse splits of its common shares effective since 5:00 pm on March 14, 2022. From now on, one share of AVGR is equal to 20 shares of its issued and outstanding common stock after the reverse stock split.
The company approved the decision on March 11, 2022, and the decision was approved after getting a green signal from its shareholders. Its shareholders have given the company’s board of directors the authority to implement the reverse stock split and determine the ratio not less than 1 for five or exceeding 1 for 20. So seeing the current scenario, the board has decided to go for 1 for 20.
On March 15, 2022, the Company’s common stock will reverse split and trade on NASDAQ. The reverse split will reduce the number of outstanding shares of common stock from approximately 95.6 million to 4.8 million before issuing Series D Preferred Stock and warrants. This will affect the terms and exercise prices of options and warrants. To avoid fractional shares, the Company will round up.
AVGR: Transaction Details
- The company has decided to go for a reverse stock split in order to achieve the following goals:
- First, to meet the company’s obligations under the January 2022 issuance of its new Series D Preferred Stock and warrants.
- Secondly, to meet the Nasdaq Capital Market’s $1.00 minimum bid price requirement, the Company must raise the per-share trading price of its common stock.
- The third thing is to make more room for the company’s common stock shares available for issuance.
The company is looking forward to achieving many goals with this reverse stock split. It will allow them to issue more common stock in the future and increase the value of its stock to meet the NASDAQ compliance required for being listed on the stock market.