Nabriva Therapeutics AG (NBRV) stock slid 2.49% to 3.850 in the early trading session following the announcement of the Company that it will divide its outstanding ordinary shares into 1-for-10 reverse shares, applicable for trading purposes on the Nasdaq Global Select Market as of the beginning of trading on the Nasdaq Global Select Market.
At the Yearly Shareholders’ meeting on 29 July 2020, the shareholders of Nabriva Therapeutics agreed, before and subject to the decision by the Board of Directors of Nabriva Therapeutics, in its absolute discretion, that a reverse share split is necessary for the Company to comply with a minimum requirement of $1.00 per share under Nasdaq Listing Regulation 5450(a)(1) (Bid Price Rule).
Every ten ordinary shares of $0.01 each of the Company authorized and unissued, authorized and approved share capital shall be combined into one ordinary share of $0.10 each, thus reducing the nominal value of the ordinary shares of the Company’s authorized and unissued, authorized and issued share capital from $0.10 each to $0.01 each. The Board of Directors of Nabriva Therapeutics then decided that the reverse stock split was appropriate for the Company to conform with the Bid Price Law.
The ordinary shares of Nabriva Therapeutics will continue to trade under the name ‘NBRV’ on the Nasdaq Global Select Market. The current CUSIP number for the ordinary shares of Nabriva Therapeutics after the reverse stock split is G63637 113.
The reverse stock split would decrease outstanding ordinary shares from approximately 150,8 million to about 15,08 million post-split shares. It will also minimize the number of outstanding ordinary shares from 1,0 billion to 100,0 million in proportion.
The reverse stock split will also refer to ordinary shares issued when the remaining limited stock units, stock options, and warrants of Nabriva Therapeutics are exercised, with a proportionate rise, if appropriate, in the corresponding exercise prices.
In conjunction with the reverse stock split, no ordinary fractional shares will be issued. Shareholders who would generally be entitled to accept a proportional cash bonus would be entitled to receive an ordinary fractional share.