Gossamer Bio completed a 1-for-80 reverse stock split, combining every 80 common shares into one, while reducing authorized common stock from 4,000,000,000 to 50,000,000 shares. The action is intended to help restore Nasdaq compliance, which requires a $1.00 closing bid price before October 5.

Key Highlights

  • Authorized common stock fell from 4,000,000,000 shares to 50,000,000 shares.
  • Convertible notes, warrants and Equity awards were proportionately adjusted for the split.
  • Split-adjusted trading was expected to begin on September 11 under GOSS.

Gossamer Bio, Inc. (NASDAQ: GOSS) completed a 1-for-80 reverse stock split, converting every 80 outstanding common shares into one share. The move is intended to help the stock meet Nasdaq’s $1.00 minimum closing bid requirement before the October 5 compliance date.

Authorized Shares Cut to 50,000,000

Authorized common stock was reduced from 4,000,000,000 shares to 50,000,000, while total authorized Capital Stock declined from 4,070,000,000 shares to 120,000,000. The company’s charter provides for 70,000,000 authorized preferred shares. Fractional shares will be rounded up to the nearest whole share rather than issued as fractions. The same treatment applies to outstanding warrants, prefunded warrants and equity awards, including their applicable exercise prices.

Nasdaq Compliance Depends on $1.00 Bid

Gossamer Bio cautioned that the reverse split may not produce a sustained increase sufficient to satisfy Nasdaq’s minimum bid-price requirement.