SANUWAVE Health, Inc. (OTCQB: SNWV), a leader in next-generation FDA-approved wound care products, has announced a strategic 1-for-375 reverse stock split of its outstanding common stock, set to take effect at 12:01 a.m. Mountain Time on October 18, 2024. This move is designed to significantly alter the company's share structure and its trading dynamics on the OTCQB market. The stock will continue to trade under the symbol "SNWV" but will adjust to the split from the market opening on the effective date, under a new CUSIP number, 80303D 305.
The reverse stock split aims to reduce the number of outstanding shares from approximately 1,181,272,961 to about 3,150,062, a common strategy employed by companies to boost their stock price and appeal to a wider investor base. Existing stockholders will see every 375 shares of their holdings automatically consolidated into one share, without any change in the par value per share. Importantly, this adjustment will not affect stockholders' percentage ownership in the company, except in instances where the consolidation results in fractional shares.
To handle fractional shares, SANUWAVE has outlined a plan to settle these in cash, ensuring all stockholders end up with whole shares post-split. Additionally, the company will adjust the number of shares subject to outstanding equity awards, convertible notes, and warrants, along with their respective conversion or exercise prices, to preserve the rights and obligations of security holders.
For those holding physical stock certificates, the Securities Transfer Corporation (STC), serving as SANUWAVE's transfer agent, will manage the exchange process. STC will also act as the exchange agent for the reverse stock split, providing necessary guidance to stockholders.
This corporate action could reshape SANUWAVE's market perception and investor appeal. While it doesn't alter the company's fundamental value, it may enhance the stock's liquidity and attractiveness. However, the market's reception to reverse splits can vary, and the ultimate success of this initiative hinges on SANUWAVE's ongoing performance and the broader market environment.
SANUWAVE Health is at the forefront of regenerative medicine, offering innovative solutions for wound healing, orthopedic/spine, aesthetic/cosmetic, and cardiac/endovascular conditions. Its commitment to advancing non-invasive, biological response-activating medical systems underscores its position in the expanding regenerative medicine sector. For further details on the reverse stock split, interested parties can consult the Company's 2024 Consent Solicitation Statement, accessible through SANUWAVE's investor relations website and the SEC's EDGAR database.
