NLS Pharmaceutics Executes 1-for-10 Reverse Share Split

NLS Pharmaceutics, a pharmaceutical company focused on the development of innovative treatments for central nervous system disorders, announced plans to implement a 1-for-10 reverse share split. This decision, effective on October 25, 2023, aims to increase the market price of its shares and better align the company with the requirements of stock exchanges.

In a statement released on October 24, NLS Pharmaceutics indicated that the reverse split is intended to improve the liquidity of its stock. By consolidating every ten shares into one, the company hopes to elevate its share price above the minimum threshold required by certain stock exchanges. This strategic move comes as NLS Pharmaceutics navigates the complexities of a competitive pharmaceutical landscape.

The company emphasized that the reverse split will not affect the overall market capitalization. Shareholders will receive one new share for every ten shares they currently own, effectively reducing the total number of shares outstanding. For instance, if a shareholder owns 100 shares prior to the split, they will hold 10 shares afterward, but the value of their investment should remain unchanged, barring market fluctuations.

NLS Pharmaceutics has been working diligently to advance its pipeline of treatments, particularly its lead product, NP-120, which is being developed for the treatment of narcolepsy. The company’s ongoing efforts to enhance its visibility and stock performance are critical as it prepares for potential future financing needs.

Investors have been closely monitoring NLS Pharmaceutics’ performance in the stock market, especially as it grapples with various challenges unique to the pharmaceutical sector. The reverse share split is viewed as a step towards stabilizing its stock price and attracting a broader range of institutional investors.

As of the announcement, NLS Pharmaceutics remains committed to its mission of delivering innovative therapies that can improve the quality of life for patients suffering from central nervous system disorders. The company’s management believes that this strategic adjustment will position it more favorably within the market, ultimately benefiting shareholders and stakeholders alike.

NLS Pharmaceutics plans to communicate further details regarding the share split to its shareholders in the coming weeks, ensuring transparency throughout this transition. The company continues to focus on its clinical trials and research initiatives as it strives to bring its promising therapies to market.