Will Tivic Health’s 1-for-17 Reverse Split Rescue Its Nasdaq Listing? Here’s What Investors Need to Know!

Tivic Health Systems (Nasdaq: TIVC) announced a 1-for-17 reverse stock split effective March 7, 2025, at 12:01 AM Eastern Time. This move aims to comply with Nasdaq’s minimum bid price requirement. Shareholders approved this decision on January 31, 2025. After the split, 17 shares will automatically convert into one new share, and the company’s trading symbol will remain ‘TIVC’ with a new CUSIP: 888705308.

This action follows a notification from Nasdaq in December 2024 about potential delisting due to not meeting minimum bid price and stockholders’ equity requirements. The company is appealing this determination but acknowledges that a reverse stock split may not guarantee continued Nasdaq listing.

Here’s a closer look at the situation:

• Pros:
  • Fractions of shares won’t generate cash payments; they will be rounded up to help shareholders.
  • This split could help the company maintain its Nasdaq listing if compliance is met.
• Cons:
  • Received a delisting notice from Nasdaq in December 2024.
  • Failed to meet minimum bid price requirements.
  • Did not meet the minimum $4-5M stockholders’ equity requirement.
  • A significant split indicates serious price declines.

The reverse split raises some concerns. It is seen as a defensive measure rather than a strategic one, indicating that the company is in a tough spot. With shares currently priced at $0.34, the split will adjust the price to roughly $5.78, temporarily resolving their compliance issue.

The company’s market cap is around $3.38 million, far below the required stockholders’ equity, which highlights its financial struggles. Such a deep consolidation often leads to dilution, where companies might issue more shares later to gain capital. While ownership percentage generally remains unchanged, these measures can lead to negative market views and pressures once trading resumes.

The details of the split are standard: new CUSIP, rounding for fractional shares, and maintaining the same ownership percentage. Overall, while the intent is to comply with Nasdaq standards, the need for such a drastic move suggests deeper issues within the company’s financial health.

Source link

TIVC, Tivic Health reverse split, Nasdaq compliance plan, 1-for-17 stock split, Tivic delisting risk, reverse stock split ratio, biotech stock compliance, Tivic Health Systems restructuring, TIVC share consolidation