ABVC BioPharma Announces Reverse Stock Split
24 Julho 2023 - 1:30PM
via NewMediaWire – ABVC BioPharma, Inc. (NASDAQ: ABVC)
("Company"), a clinical-stage biopharmaceutical company developing
therapeutic solutions in ophthalmology, neurology, and
oncology/hematology, today announced a reverse stock split of its
common stock ("Reverse Stock Split") of one post-split share for
every ten pre-split shares in an effort to regain compliance with
Nasdaq's listing rules. The Company expects the Reverse Stock Split
to be effective as of 12:01 a.m. EST on July 25, 2023, authorizing
a 1-for-10 reverse stock split of the issued and outstanding shares
of its common stock under the new CUSIP Number: 00091F 304.
The Company obtained shareholder approval for the Reverse Stock
Split at a special meeting of shareholders on July 07, 2023 and the
Company's board of directors approved the Reverse Stock Split ratio
of 10 to 1. The principal purpose of the Reverse Stock Split is to
decrease the total number of shares of common stock outstanding and
hopefully, proportionately increase the market price of the common
stock to meet the continued listing requirements of The Nasdaq
Capital Market. The Company's common stock will continue trading
under the ticker symbol "ABVC." The Reverse Stock Split will not
impact the rights or preferences of the Company's common stock
shares. The ownership percentage and voting power of each
stockholder will remain virtually unchanged. No fractional shares
will be issued as a result of the Reverse Stock Split. Stockholders
who would have received fractional shares due to their holdings not
being evenly divisible by the reverse stock split ratio will
receive shares rounded up to the nearest whole number.
The Company’s Board of Directors expressed that they aim for the
Reverse Stock Split to not only enable the company to meet the
NASDAQ listing requirements, but also to lead the company out of
the 'Penny Stock' category. The Board further emphasized, "We
believe this reverse stock split can have a positive impact on the
Company's market valuation, creating a solid foundation for growth.
By improving our financial standing, we aim to instill confidence
in our investors and attract a broader investor base. Ultimately,
we strive to establish a more stable financial platform to attract
investors and enable us to pursue our research and development
activities with greater stability."
The Company has appointed VStock Transfer, LLC as its exchange
agent for the Reverse Stock Split. Stockholders owning pre-split
shares via a bank, broker, or other nominee will have their
positions automatically adjusted to reflect the Reverse Stock
Split. They will not be required to take further action concerning
the Reverse Stock Split, subject to brokers' particular processes.
Similarly, registered stockholders holding pre-split shares of the
Company's common stock electronically in book-entry form are also
not required to take further action in connection with the Reverse
Stock Split.
The company’s pipeline products have great market potential. As
per the Future Market Insights report, the MDD market was valued at
$11.51 billion in 2022 and is expected to reach $14.96 billion by
2032 with a CAGR of 2.8% over the forecast period [1]. According to
the Polaris market research report, the global ADHD treatment
market was valued at $16.13 billion in 2022 and is expected to
reach $32.14 billion by 2030 with a CAGR of 7.1% over the forecast
period [2]. According to iHealthcare Analyst, Inc., the global
market for retinal surgery devices is expected to reach $4.3
billion by 2029, at a CAGR of 7.7%, driven in part by the rising
geriatric population worldwide [3]. About ABVC
BioPharma
ABVC BioPharma is a clinical-stage biopharmaceutical company
with an active pipeline of six drugs and one medical device
(ABV-1701/Vitargus®) under development. For its drug products, the
Company utilizes in-licensed technology from its network of
world-renowned research institutions to conduct proof-of-concept
trials through Phase II of clinical development. The Company's
network of research institutions includes Stanford University, the
University of California at San Francisco, and Cedars-Sinai Medical
Center. For Vitargus®, the Company intends to conduct global
clinical trials through Phase III.
Forward-Looking Statements
This press release contains "forward-looking statements." Such
statements may be preceded by the words "intends," "may," "will,"
"plans," "expects," "anticipates," "projects," "predicts,"
"estimates," "aims," "believes," "hopes," "potential," or similar
words. Forward-looking statements are not guarantees of future
performance, are based on certain assumptions, and are subject to
various known and unknown risks and uncertainties, many of which
are beyond the Company's control, and cannot be predicted or
quantified, and, consequently, actual results may differ materially
from those expressed or implied by such forward-looking statements.
None of the outcomes expressed herein are guaranteed. Such risks
and uncertainties include, without limitation, risks and
uncertainties associated with (i) our inability to manufacture our
product candidates on a commercial scale on our own, or in
collaboration with third parties; (ii) difficulties in obtaining
financing on commercially reasonable terms; (iii) changes in the
size and nature of our competition; (iv) loss of one or more key
executives or scientists; and (v) difficulties in securing
regulatory approval to proceed to the next level of the clinical
trials or to market our product candidates. More detailed
information about the Company and the risk factors that may affect
the realization of forward-looking statements is set forth in the
Company's filings with the Securities and Exchange Commission
(SEC), including the Company's Annual Report on Form 10-K and its
Quarterly Reports on Form 10-Q. Investors are urged to read these
documents free of charge on the SEC's website
at http://www.sec.gov. The Company assumes no obligation to
publicly update or revise its forward-looking statements as a
result of new information, future events or otherwise.
This press release does not constitute an offer to sell, or the
solicitation of an offer to buy any of the Company’s securities,
nor shall such securities be offered or sold in the United States
absent registration or an applicable exemption from registration,
nor shall there be any offer, solicitation or sale of any of the
Company’s securities in any state or jurisdiction in which such
offer, solicitation or sale would be unlawful prior to registration
or qualification under the securities laws of such state or
jurisdiction.
Contact:Tom MastersonEmail: tmasterson@allelecomms.com
[1] https://www.futuremarketinsights.com/reports/major-depressive-disorder-treatment-market#:~:text=The%20major%20depressive%20disorder%20(MDD,US%24%2011.51%20billion%20in%202022[2] https://www.prnewswire.com/news-releases/global-attention-deficit-hyperactivity-disorder-adhd-market-size-projected-to-reach-usd-32-14-billion-by-2032--with-cagr-of-7-1-study-by-polaris-market-research-301729196.html#:~:text=According%20to%20the%20research%20report,Deficit%20Hyperactivity%20Disorder%20(ADHD)%3F[3] https://www.ihealthcareanalyst.com/technological-advancement-ophthalmic-surgery-retinal-surgery-devices-market/
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