Novan, Inc. (NASDAQ: NOVN) reported filing of a Certificate of Amendment to the Restated Certificate of Incorporation of the Company to execute a one for ten reverse split of its issued and outstanding common stock. The reverse stock split will be active as of 5pm Eastern Time on May 25th, 2021 as the company’s common stock is expected to trade on a split adjusted basis when the market opens on May 26th, 2021. At the company’s previous annual meeting of stockholders back in July 28th, 2020, the stockholders approved the amendment to the restated certificate of incorporation of the company to go through with the reverse stock split of the company’s common stock at a certain ratio.
“We believe that the Reverse Stock Split is an important step for the Company and its stockholders to optimize our position as we work to execute strategic initiatives across all fronts. Our management team and Board of Directors believe that it is in the best interest of our stockholders and the Company to implement the Reverse Stock Split in order to enable us to be prepared for success with our anticipated upcoming milestones,” said Paula Brown Stafford, President and Chief Executive Officer of Novan. “Implementing the Reverse Stock Split will make available an increased number of authorized but unissued shares allowing us to pursue additional financing activities and/or other strategic transactions to support the development and potential commercialization of our product candidates, and we believe it will also help us maintain compliance with Nasdaq’s $1.00 minimum bid price requirement and potentially make our stock more attractive to a broader range of institutional and other investors.”
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Novan Reports its 1 for 10 Reverse Stock Split