AzurRx BioPharma Announces Reverse Stock Split
BOCA RATON, Fla., Sept. 10, 2021 (GLOBE NEWSWIRE) -- AzurRx BioPharma, Inc. (NASDAQ: AZRX), (“AzurRx” or the “Company”), a clinical stage biopharmaceutical company specializing in the development in the development of targeted, non-systemic therapies for gastrointestinal (GI) diseases, announced today that it intends to effect a reverse stock split of its common stock at a ratio of 1 post-split share for every 10 pre-split shares. AzurRx’s common stock will continue to be traded on the NASDAQ Capital Market under the symbol AZRX and will begin trading on a split-adjusted basis when the market opens on Monday, September 13, 2021, under a new CUSIP number, 05502L204.
“This is a proactive measure, approved by our stockholders over six months ago, that we believe will better position AzurRx for success, and ultimately generate value for all of the Company’s stockholders,” said James Sapirstein, Chairman, President and CEO of AzurRx BioPharma. “This move has been part of our long-term plan to consolidate our share count to a level more in line with a company of our size. The ultimate aim is to raise our stock’s visibility within the investment community by improving long-term liquidity and creating a trading environment attractive to institutional investors in the hopes of broadening our shareholder base.”
At the effective time of the reverse stock split, every ten shares of AzurRx’s issued and outstanding common stock will be converted automatically into one issued and outstanding share of common stock, with a corresponding 1-for-10 reduction in the number of authorized shares of common stock, but without any change in the par value per share. Stockholders holding shares through a brokerage account will have their shares automatically adjusted to reflect the 1-for-10 reverse stock split. It is not necessary for stockholders holding shares of the Company’s common stock in certificated form to exchange their existing stock certificates for new stock certificates of the Company in connection with the reverse stock split, although stockholders may do so if they wish.
The reverse stock split will affect all stockholders uniformly and will not alter any stockholder’s percentage interest in the Company’s equity, except to the extent that the reverse stock split would result in a stockholder owning a fractional share. No fractional shares will be issued in connection with the reverse split. Stockholders who would otherwise be entitled to receive a fractional share will instead receive a cash payment based on today’s closing price of the Company’s common stock as reported on Nasdaq. The reverse stock split will reduce the number of shares of AzurRx’s common stock outstanding from approximately 93 million shares to approximately 9.3 million shares. Proportional adjustments will be made to the number of shares of AzurRx’s common stock issuable upon exercise or conversion of AzurRx’s equity awards, convertible preferred stock and warrants, as well as the applicable exercise price. Stockholders with shares in brokerage accounts should direct any questions concerning the reverse stock split to their broker; all oher stockholders may direct questions to the Company’s transfer agent, Colonial Stock Transfer, at 801-355-5740.
At a special meeting of stockholders held on February 24, 2021, AzurRx’s stockholders granted the Company’s Board of Directors the discretion to effect a reverse stock split of AzurRx’s common stock through an amendment to its Certificate of Incorporation at a ratio of not less than 1-for-5 and not more than 1-for-10, such ratio to be determined by the Company’s Board of Directors. Among other things, the reverse stock split is intended to increase the per share trading price of the common stock to satisfy the minimum bid price requirement for continued listing on The Nasdaq Capital Market (Rule 5550(a)(2)).
About AzurRx BioPharma, Inc.
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