Adagio Medical Holdings will combine every 30 shares of its common stock into one share in a 1-for-30 reverse stock split. The change takes effect at 5 p.m. Eastern time on Nov. 6, with the stock set to begin trading on a split-adjusted basis when the market opens Nov. 9.
The company’s stockholders approved a range of possible reverse-split ratios at an Oct. 23 meeting, and the board selected the 1-for-30 ratio that day.
Key details
- Share conversion: Each 30 shares outstanding immediately before the split will become one share. The stock’s par value will remain $0.0001 per share.
- Fractional shares: Adagio will not issue fractional shares. Holders entitled to a fractional share will instead receive cash in lieu of that share.
- Effect on ownership: The split will apply proportionately to all stockholders, so it will not change their percentage ownership except where cash paid for a fractional share results in a small difference.
- Equity awards and warrants: The number of shares issuable under outstanding stock options, restricted stock units and warrants will be adjusted proportionately. Option share counts and the shares reserved under the company’s equity plans will decrease, while option exercise prices will increase proportionately.
- Trading details: The stock will trade on Nasdaq’s Capital Market on a split-adjusted basis starting Nov. 9. Its new CUSIP number will be 00534B308.
What changes for investors
The split reduces the number of shares outstanding and adjusts share-based awards, but it does not by itself change a stockholder’s proportional ownership. Cash in lieu of fractional shares is the stated exception.