The top level chiropractic care said it expects that the reverse split will help it meet the $1.00 minimum bid price requirement for the Nasdaq market. Based on the number of shares currently outstanding, Rennova Health said the move will reduce the number of shares of common stock from 20.4 million to 1.4 million shares.
Shareholders gave the reverse stock split a thumbs-up in September. Earlier this month, the West Palm Beach, Fla.-based company said it inked a securities purchase agreement with with certain institutional investors, issuing $2.6 million in aggregate principal amount of senior secured original issue discount convertible debentures due 2 years from issuance.
The company also issued 3 series of warrants to purchase shares of common stock. Proceeds from the deal are expected to be $2.1 million.