Mainz Biomed Announces 1-for-40 Reverse Stock Split to Maintain Nasdaq Listing Compliance
Staff Writer • 2024-12-03
Mainz Biomed N.V. (NASDAQ: MYNZ), a molecular genetics diagnostics company specializing in the early detection of cancer, announced a 1-for-40 reverse stock split of its issued and outstanding shares. The reverse stock split, approved by the Company’s Board of Directors following shareholder authorization at the Extraordinary Shareholders Meeting on November 20, 2024, is set to become effective on December 3, 2024. Post-split, the Company’s ordinary shares will continue trading under the ticker symbol “MYNZ” on the Nasdaq Capital Market, with a new CUSIP number: N5436L119. Objective of the Reverse Stock Split The reverse stock split aims to: 1. Increase Market Price Per Share: Ensure compliance with Nasdaq Listing Rule 5550(a)(2), which requires a minimum bid price of $1.00 per share. 2. Enhance Investor Appeal: Position the Company’s shares as a more attractive investment by increasing the trading price of its ordinary shares. Key Details of the Reverse Stock Split • Ratio and Adjustments: Every 40 issued and outstanding ordinary shares will be converted into one share. Fractional shares will not be issued; instead, cash payments will be made in lieu of fractions. • Impact on Shareholders: Ownership percentages and voting power will remain unchanged except for minor adjustments related to fractional shares. • Outstanding Shares: The total number of outstanding ordinary shares will decrease from approximately 80.1 million to about 2.0 million. • Shareholder Action: No action is required for shares held in brokerage accounts or electronically. Shareholders with physical share certificates will receive instructions from the transfer agent, Transhare Corporation. Nasdaq Compliance Efforts The reverse stock split is part of Mainz Biomed’s efforts to address Nasdaq’s listing requirements. • Minimum Bid Price: The Company received notice in May 2024 that its share price had fallen below Nasdaq’s $1.00 minimum bid price requirement for 30 consecutive trading days. While the initial 180-day compliance period ended on November 25, 2024, the reverse stock split is expected to bring the share price back into compliance. • Shareholder Equity Requirement: Mainz Biomed also fell short of the $2.5 million minimum stockholders’ equity requirement under Nasdaq Listing Rule 5550(b)(1). On November 27, 2024, the Company received a determination letter from Nasdaq stating that it had not regained compliance within the allotted time. Mainz Biomed plans to request a hearing to appeal this determination, which would automatically stay any suspension or delisting action pending the outcome. The Nasdaq Hearing Panel has the authority to grant an extension of up to 180 days from the date of the determination letter. Looking Ahead Mainz Biomed remains committed to its mission of advancing cancer diagnostics while ensuring compliance with Nasdaq listing standards. The reverse stock split is a critical step in maintaining its position on the Nasdaq Capital Market and preserving access to public capital markets. For further updates and information, shareholders are encouraged to visit the Company’s website or contact their broker. About Mainz Biomed Mainz Biomed N.V. is a molecular genetics diagnostics company specializing in early cancer detection. Leveraging cutting-edge technology, the Company develops and commercializes advanced diagnostic solutions designed to save lives and improve healthcare outcomes globally.
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