TransCode Therapeutics Implements Strategic Reverse Stock Split

TransCode Therapeutics Implements Strategic Reverse Stock Split

TransCode Therapeutics, Inc. (Nasdaq: RNAZ) has taken a significant step forward in its corporate strategy by approving a 1-for-28 reverse stock split. This initiative is crucial for compliance with Nasdaq's minimum bid price requirements which play a vital role in maintaining the listing of the company's stock on the exchange.

Understanding the Reverse Stock Split

The approved reverse stock split will convert twenty-eight existing shares of common stock into one new share. This adjustment is expected to elevate the trading price per share, which is a central aim behind the decision. It's worth noting that no fractional shares will be issued; instead, shareholders who would receive a fractional share will have their holdings rounded up to the nearest whole number.

Effects on Shareholder Holdings

The implementation of the reverse stock split will decrease the total number of outstanding shares from about 23.3 million shares to roughly 833,620 shares. This reduction will be accompanied by proportional adjustments to the exercise prices of TransCode's existing options and warrants, along with any shares issued under its stock incentive plans. Such changes aim to balance the implications of the split and maintain value for the shareholders.

How Will the Process Work?

Vstock Transfer LLC will be the designated exchange agent for the reverse stock split. Shareholders of record will not need to take any action to receive their new shares after the split occurs. Those owning shares through banks, brokers, or custodians can expect that their positions will be automatically adjusted without needing further steps on their part. It's important for these shareholders to understand that the procedures might vary slightly depending on their respective financial institutions.

Next Steps for Implementation

While the effective date for the reverse stock split has not yet been set, TransCode Therapeutics has pledged to announce this date at least two business days prior to the execution of the split. This announcement will provide clarity and help shareholders prepare for the transition.

About TransCode Therapeutics

TransCode Therapeutics is dedicated to the battle against cancer, focusing on the development of RNA therapeutics. As a clinical-stage biotechnology company, its mission centers on leveraging its proprietary TTX nanoparticle platform. The lead candidate, TTX-MC138, specifically targets metastatic tumors known for overexpressing microRNA-10b, a key biomarker associated with metastasis. Furthermore, TransCode is broadening its scope by developing a range of first-in-class RNA therapeutic candidates aimed at overcoming significant challenges related to RNA delivery.

Frequently Asked Questions

What is a reverse stock split?

A reverse stock split is a corporate action that consolidates the number of existing shares into fewer shares, raising the share price proportionally.

Why did TransCode Therapeutics decide to implement a reverse stock split?

The reverse stock split aims to increase the company’s share price to meet Nasdaq's minimum bid price requirements for maintaining its listing.

How will this affect current shareholders?

Current shareholders will see their total number of shares decrease, but the overall value of their investment should remain unchanged due to the increase in share price.

When will the reverse stock split take effect?

The effective date has not been decided yet; it will be announced two business days prior to implementation.

What might shareholders need to do regarding their brokerage firms?

Shareholders should check with their banks, brokers, or custodians for any specific actions required, as processing procedures may differ.

About The Author

Hi there, I'm Hannah Lewis, a writer and financial specialist of 36 years old committed to making money understandable and approachable to everyone. Years of working in the field have given me a thorough grasp of market trends, investment techniques, and economic fundamentals. My objective is to enable people, by means of understandable, useful guidance, to take charge of their financial destiny.

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