April 13, 2024

Finch Therapeutics Announces Reverse Stock Split to Satisfy Nasdaq Listing Requirements

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In a strategic move to meet the minimum price requirement for continued listing on the Nasdaq Global Select Market, Finch Therapeutics Group, Inc. (Nasdaq: FNCH), a leading microbiome technology company, has announced a one-for-30 reverse stock split of its issued and outstanding common stock. The decision was approved by Finch stockholders at the Annual Meeting of Stockholders held on June 8, 2023.

The reverse stock split aims to increase the per share trading price of Finch’s common stock, positioning the company to maintain its listing on the Nasdaq Global Select Market. Finch expects the split-adjusted common stock to commence trading on June 12, 2023, under the existing trading symbol “FNCH” and CUSIP number 31773D200.

This reverse stock split will uniformly impact all issued and outstanding shares of Finch’s common stock and will not alter any stockholder’s percentage interest in the company’s equity, except in cases where fractional shares are involved. Fractional shares will not be issued, and stockholders entitled to fractional shares will receive a cash payment equivalent to the fair market value of such fractional shares, as determined by Finch’s Board of Directors.

According to the company, the reverse stock split will not affect the par value of Finch’s common stock, which will remain at $0.001 per share. Furthermore, there will be no changes to the authorized number of shares of common stock or preferred stock following the reverse stock split.

American Stock Transfer & Trust Company, LLC (AST) will act as the exchange agent and transfer agent for the reverse stock split. Stockholders holding their shares in book-entry form will receive a statement from AST reflecting the adjusted number of shares registered in their accounts after the reverse stock split. Stockholders who hold their shares through banks, brokers, or other nominees will see their positions adjusted accordingly, and payment for any fractional shares will be made based on the processes implemented by their respective banks, brokers, or nominees.

Finch Therapeutics has provided additional information regarding the reverse stock split in its definitive proxy statement, filed with the Securities and Exchange Commission on April 26, 2023.

The reverse stock split represents a strategic maneuver by Finch Therapeutics to comply with Nasdaq’s listing requirements while seeking to enhance the per share trading price of its common stock. With this move, Finch aims to position itself for continued growth and to capitalize on emerging opportunities in the microbiome technology sector. Will it work? only time will tell.

Richard Wells
Financial Desk

 

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