BANGKOK - NewGenIvf Group Limited (NASDAQ:NIVF), a provider of fertility services in Asia with annual revenue of $5.68 million, has announced a reverse stock split of its shares in a bid to comply with Nasdaq's minimum bid price requirement. According to InvestingPro data, the company faces significant financial challenges, with a weak overall health score and concerning cash burn rate. The reverse stock split, approved by the company's board on January 21, 2025, will see every twenty shares combined into one share, effective from the start of trading on February 11, 2025. This move comes as the stock has declined 97.64% over the past year, with the current market capitalization standing at just $3.52 million.
The reverse stock split will apply to all issued and unissued Class A ordinary shares, Class B ordinary shares, and preferred shares of NewGen. The company's Class A ordinary shares will trade on the Nasdaq Global Market under the current ticker symbol 'NIVF' and a new CUSIP number G0544E204. This consolidation will reduce the number of outstanding Class A ordinary shares from approximately 27.07 million to about 1.35 million.
No fractional shares will be issued as a result of the reverse stock split. Shareholders who would otherwise hold a fractional share will receive one full post-split Class A ordinary share. Additionally, all options, warrants, and other convertible securities of the company will be adjusted in line with the reverse stock split.
The primary aim of this financial maneuver is to enable NewGen to regain compliance with the Nasdaq $1.00 per share minimum bid price requirement, as per Nasdaq Listing Rule 5450(a)(1). The company has until April 7, 2025, to meet this requirement, although there is no guarantee of compliance.
NewGen operates fertility clinics in Thailand, Cambodia, and Kyrgyzstan, offering services including infertility treatment and assisted reproductive technology. Continental Stock Transfer & Trust Company will act as the transfer agent for the reverse stock split.
The company's forward-looking statements indicate plans for future operations and strategies, yet they are subject to risks and uncertainties, including the possibility of failing to implement business plans or meet financial projections. InvestingPro analysis reveals concerning metrics, including a current ratio of 0.28 and negative free cash flow, suggesting significant operational challenges. For deeper insights into NIVF's financial health and 10+ additional ProTips, consider exploring InvestingPro's comprehensive analysis tools.
This news is based on a press release statement from NewGenIvf Group Limited.
In other recent news, NewGenIvf Group Limited, an Asia-based fertility services provider, has made a strategic investment of $1 million in digital assets, managed by OSL Digital Securities. This investment, known as a "pilot tranche," aims to establish a digital asset portfolio, including Bitcoin, Ethereum, and Tether, among others. The move is part of NewGen's commitment to diversifying its revenue streams and capitalizing on the positive trends in the crypto market.
Simultaneously, NewGenIvf is facing potential delisting from the Nasdaq Stock Market due to non-compliance with the exchange's minimum bid price requirement and Market Value of Publicly Held Shares (MVPHS) and Market Value of Listed Securities (MVLS) requirements. In response, the company has initiated an appeal process and secured funding arrangements with ATW Partners Opportunities Management, LLC, and White Lion Capital, LLC. Additionally, NewGenIvf intends to transfer its securities from the Nasdaq Global Market to the Nasdaq Capital Market, which may have more lenient listing requirements.
These are recent developments that investors should be aware of, as they could influence the company's actual future performance. Notably, the company's management team has over a decade of experience in the fertility industry and operates clinics in Thailand, Cambodia, and Kyrgyzstan. These recent developments and strategic moves underscore NewGenIvf's efforts to address its market value deficiencies and maintain its public trading status.
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