Homology Medicines Inc . (NASDAQ: NASDAQ:FIXX), a genetic medicines company, has announced the approval of a reverse stock split at a ratio of 1-for-18, following a green light from its stockholders at a special meeting. The board of directors has decided to consolidate every 18 shares of issued and outstanding common stock into one share.
The company is set to file the necessary amendment with the Secretary of State of Delaware on March 22, 2024, and anticipates the reverse stock split to take effect at the start of trading on March 25, 2024. Post-split trading will commence under a new CUSIP number 746964105.
This corporate action aligns with the terms of the Agreement and Plan of Merger dated November 16, 2023, which outlines the merger of Homology’s wholly owned subsidiary with Q32 Bio Inc., resulting in Q32 emerging as a direct, wholly owned subsidiary of Homology. The reverse stock split aims to streamline the company's capital structure as it advances through this strategic merger.
The reverse split is structured to be uniform across all shares of Homology common stock, ensuring that all stockholders are equally affected. It will not alter any stockholder's percentage ownership in the company, except in cases involving fractional shares.
Stockholders who would have received a fractional share post-split will instead receive a cash payment, calculated based on the fraction of the share they would have held, multiplied by the adjusted closing price per share on The Nasdaq Global Select Market on March 22, 2024.
This cash payout in lieu of fractional shares ensures that stockholders retain their proportional ownership without the need to issue fractional stock. The move is part of Homology's larger efforts to improve its financial structure and provide a more attractive capitalization framework to investors, particularly in the context of its impending merger with Q32 Bio Inc.
The information regarding the reverse stock split is based on a statement from a SEC filing by Homology Medicines Inc.
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