MINNEAPOLIS – Nuwellis, Inc. (NASDAQ:NUWE), a medical technology company, has declared a 1-for-35 reverse stock split of its common stock, set to take effect after market close on June 27, 2024. The company's common stock will begin trading on a split-adjusted basis on The Nasdaq Capital Market from June 28, 2024.
This corporate action follows the approval from Nuwellis stockholders at the annual meeting on June 6, 2024, where they voted in favor of amending the company's Fourth Amended and Restated Certificate of Incorporation. The amendment allows for a reverse stock split at a ratio ranging from 1-for-5 to 1-for-70, as determined by the Board of Directors.
As a result of the reverse split, every thirty-five shares of the company's common stock will be combined into one share. Despite the reduction in the number of outstanding shares, the total number of authorized shares will remain unchanged at 100 million.
Shareholders who would hold a fractional share post-split will receive a cash payment instead, equivalent to the fractional share's value based on the closing sales price of Nuwellis' common stock on the last trading day before the reverse split's effective date.
The reverse split aims to consolidate shares and potentially increase the stock price, making it more attractive to investors. Nuwellis' ticker symbol on The Nasdaq Capital Market will remain as "NUWE," and the new CUSIP number for the common stock following the reverse split will be 67113Y603.
Nuwellis specializes in addressing the clinical needs of patients with fluid overload through its Aquadex SmartFlow® system for ultrafiltration therapy. The company, headquartered in Minneapolis, also operates a wholly owned subsidiary in Ireland.
Further details regarding the reverse stock split are available in the definitive proxy statement filed with the Securities and Exchange Commission on May 17, 2024, and on the company's website under the Investor Relations section.
This news article is based on a press release statement from Nuwellis, Inc.
In other recent news, Nuwellis, a medical technology firm, has secured a significant purchase agreement with a major U.S. integrated delivery network. This deal expands the reach of the company's Aquadex therapy across the network's 50-hospital system, aiming to enhance patient care for those with conditions like heart failure and fluid overload.
This development follows recent data indicating significant reductions in hospitalization and heart failure events when patients were treated with Aquadex.
Moreover, Nuwellis reported modest revenue growth in the first quarter of 2024. The company experienced a 2% year-over-year increase, totaling $1.9 million, primarily driven by an 11% rise in consumable utilization. Notably, the pediatric sector saw a substantial 40% increase in revenue. However, heart failure revenue declined by 38% due to reduced utilization and consult sales.
Despite these challenges, Nuwellis is optimistic about its future. The company anticipates an increase in capital sales, backed by a strong pipeline of new accounts, and ended the quarter with $1.4 million in cash. These recent developments indicate a dynamic period for Nuwellis, with significant growth opportunities on the horizon.
InvestingPro Insights
In the wake of Nuwellis, Inc.'s announcement of a reverse stock split, investors may be weighing the potential impacts on the company's financial health and market performance. According to InvestingPro, Nuwellis holds more cash than debt on its balance sheet, which could provide a cushion as the company navigates its strategic shift. Still, it is important to note that the company is also rapidly burning through its cash reserves, which may raise concerns about long-term sustainability.
InvestingPro data reveals a market capitalization of 3.93 million USD for Nuwellis, reflecting the market's current valuation of the company. The Price to Book ratio, as of the last twelve months leading up to Q1 2024, stands at 4.45, suggesting that the market values the company at a premium compared to its book value. Moreover, the company has experienced a revenue growth of 5.35% over the same period, indicating some level of expansion in its operations.
Still, the stock's recent performance tells a cautionary tale, with a significant 91.56% decline in the 1-year price total return as of the data cut-off. This aligns with the InvestingPro Tip that highlights Nuwellis' high price volatility and poor price performance over the last decade. Investors should also be aware that the company does not pay a dividend, which may influence the attractiveness of the stock for income-focused portfolios.
For those considering a deeper dive into Nuwellis' financials and market outlook, InvestingPro offers additional insights. There are 12 more InvestingPro Tips available for Nuwellis, which can be accessed with a subscription. Interested readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, potentially providing valuable guidance in assessing the company's future in the wake of its reverse stock split.
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