Business
Precipio Takes Final Step Towards Regaining Nasdaq Compliance
Company announces 1-for-20 reverse stock split NEW HAVEN, Conn., Sept. 21, 2023 (GLOBE NEWSWIRE) -- Specialty cancer diagnostics company Precipio, Inc.
About this update from Precipio, Inc.
[{"type":"text","content":"Company announces 1-for-20 reverse stock split\nNEW HAVEN, Conn., Sept. 21, 2023 (GLOBE NEWSWIRE) -- Specialty cancer diagnostics company Precipio, Inc. (NASDAQ: PRPO) today announced that it has implemented a 1-for-20 reverse stock split of outstanding shares of the company's common stock in order to regain compliance with the Nasdaq minimum bid price requirement of $1.00. What is the economic impact to you, the shareholder? A reverse split essentially means a decrease in the number of shares and a proportional increase in the value of the share price. Therefore, the reverse split in itself has no impact on the aggregate value of stock held by you as a shareholder. Shareholders may be concerned about the potential negative impact to value. While the market perception of reverse splits is typically not a positive one, the company believes that with its current trajectory, this transaction will actually benefit the company by expanding the shareholder audience. It is management’s opinion that ultimately, value is created through positive results and revenue growth. As Precipio has demonstrated over the past few quarters, the company has products with a significant total addressable market and attractive margins, and is increasing its customer base each quarter. Furthermore, management believes the company is on track to hit its goals and reach breakeven and financial independence. This will be a very different story than the company’s history. As previously communicated, management continues to focus on creating shareholder value through continued growth in revenue and gross margin, and moving towards becoming a cash-flow positive company. We believe this is how we will deliver positive growth and value to our investors. Why did the company choose a 1-for-20 ratio? The primary goal of the reverse stock split is to increase the per share market price of the company’s common stock to meet the minimum per share bid price requirement for continued listing on The Nasdaq Capital Market. As you may know, many individual investors, and some institutional investors, are prohibited from trading shares of companies below $2, and some are prohibited from trading shares below $5. The post-reverse stock split share price should enable the company to broaden its potential pool of investors to include both individual and institutional investors ...