BERWYN, PA — In a recent Special Meeting of Shareholders, Virpax Pharmaceuticals, Inc. (NASDAQ: VRPX) revealed that its stockholders had given the green light for a reverse stock split. The Berwyn, Pennsylvania-based company announced this strategic move as part of its effort to maintain compliance with the $1.00 minimum price bid requirement for continued listing on Nasdaq.
The amendment to the certificate of incorporation will allow the Board of Directors to effect the reverse stock split at their discretion. However, Virpax has clarified that it will only put this measure into action if the minimum bid price requirement hasn’t been met by the end of the compliance period on April 8, 2024.
The company plans to announce the specific reverse stock split ratio—which could range from 1-to-2 to 1-to-20—along with the anticipated effective date of the reverse stock split at a later time if necessary.
A reverse stock split is a corporate action that reduces the number of outstanding shares and increases the share price proportionally. While it doesn’t affect the company’s overall market capitalization, it can help a firm meet the minimum share price requirements of stock exchanges.
However, at the same meeting, Virpax shareholders did not grant sufficient votes for the approval of other proposals. These included an amendment to the 2022 Equity Incentive Plan and the adjournment of the 2023 Special Meeting to permit further solicitation and vote of proxies.
The decision to approve a potential reverse stock split aims to help maintain the company’s Nasdaq listing. Investors will be watching closely to see whether the company’s share price reaches the required threshold by the April deadline, or if the approved reverse stock split will come into play.
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