Elevai Labs Inc. Announces Strategic Reverse Stock Split

Elevai Labs Inc. Implements a Reverse Stock Split

Elevai Labs Inc. (NASDAQ: ELAB) is set to undergo a significant transformation as it embraces a 1-for-200 reverse stock split, effective at midnight on a specified date. This decision is an important part of the company’s strategy to maintain compliance with Nasdaq's listing requirements, particularly focusing on meeting the minimum bid price threshold of $1.00 per share. With this measure, Elevai aims to solidify its standing on the Nasdaq Capital Market and ensure continued visibility and confidence from its investors.

Details of the Reverse Stock Split

The reverse stock split is structured so that every 200 shares of common stock will be consolidated into a single share. This consolidation process requires no immediate action from shareholders, simplifying the transition for all involved.

For those shareholders with fractional shares, the company has ensured that they will receive one full share for each fractional portion they hold. This move is expected to promote a more stable trading environment for Elevai's stock.

Although the trading symbol will remain as "ELAB," a new CUSIP number will be issued reflecting this change. Notably, all outstanding stock options and equity awards will also undergo proportional adjustments, maintaining equity balance.

Goals Behind the Reverse Stock Split

The primary aim of implementing this reverse stock split is to ensure that Elevai remains in compliance with Nasdaq's regulations. A listing on Nasdaq is crucial not only for attracting attention but also for enabling easier access to capital and resources needed for further advancements in the company’s offerings.

The leadership team at Elevai believes that maintaining a strong Nasdaq presence could enhance investor confidence and, consequently, facilitate future growth. As stated by Graydon Bensler, the Chief Executive Officer of Elevai, maintaining compliance is essential to establishing a groundwork for continued innovation and value creation for shareholders.

Implications for Shareholders

Shareholders should be aware that they won’t need to take any immediate actions, particularly those who hold shares through brokerage accounts. Their holdings will be automatically updated to reflect the changes post-split.

For shareholders who possess physical stock certificates, Elevai has partnered with VStock Transfer, LLC, to simplify the process of exchanging certificates. Detailed guidelines will be provided for those who wish to convert their shares.

Critically, the reverse stock split is designed not to alter the overall value of their equity but merely to adjust the number of shares available while proportionately modifying the share price. Post-split data estimates around 3.07 million shares of common stock will be outstanding.

Strategic Vision for the Future

With the reverse stock split now part of Elevai’s strategy, the company is confident in its direction moving forward. Focusing on medical aesthetics and biopharmaceutical drug development, Elevai aims to broaden its reach through innovative solutions tied to skin health and metabolic wellness.

The company operates under three wholly owned subsidiaries, namely Elevai Skincare Inc., Elevai Biosciences Inc., and Elevai Research Inc., all of which contribute to a robust portfolio dedicated to excellence in service and product offerings.

Conclusion and Contact Information

For those interested in receiving further updates or detailed information about the reverse stock split and its implications, the company’s full Form 8-K filing offers extensive insights, and stakeholders can connect directly with Elevai via email at IR@ElevaiLabs.com.

Frequently Asked Questions

What is a reverse stock split?

A reverse stock split is a corporate action where a company reduces the number of its outstanding shares, increasing the share price proportionally without altering market capitalization.

Why is Elevai Labs Inc. conducting a reverse stock split?

Elevai is conducting this split to comply with Nasdaq's minimum share price requirements and to enhance its market presence, driving investor confidence.

What will happen to my shares after the reverse stock split?

Your brokerage account will automatically reflect the changes post-split. For physical certificates, a conversion process through VStock Transfer will be communicated.

Will this split affect the value of my investment?

The split itself will not change the overall value of your investment, as the total equity remains the same; only the number of shares and share price will be adjusted.

How can I find more information about Elevai Labs?

For more information, you can refer to Elevai's website or reach out directly via their designated investor relations email.

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