AEON Biopharma Announces 1-for-72 Reverse Stock Split
IRVINE, Calif., Feb. 24, 2025 – AEON Biopharma, Inc. (AEON), a clinical-stage biopharmaceutical company specializing in the development of a botulinum toxin complex through the 351(k) biosimilar pathway, recently disclosed that its Board of Directors had approved a 1-for-72 reverse stock split (the “Reverse Stock Split”) of the company’s common stock, with a par value of $0.0001 (the “Common Stock”). This decision was made to ensure compliance with the NYSE American LLC’s (“NYSE American”) listing requirements and policies.
Background
AEON Biopharma, Inc., a California-based biopharmaceutical company, is focused on developing and commercializing novel therapeutics for various indications. Its primary focus is on a botulinum toxin complex under the 351(k) biosimilar pathway. The 351(k) pathway is a regulatory pathway that allows for the approval of a biosimilar product that is highly similar to an already approved reference product. AEON’s botulinum toxin complex is intended for the treatment of various neuromuscular disorders.
Rationale for Reverse Stock Split
The Reverse Stock Split was approved due to the Company’s common stock trading below the minimum bid price required for continued listing on the NYSE American. The minimum bid price for continued listing on the NYSE American is $1.00 per share. As of February 24, 2025, the closing price of AEON’s common stock was $0.00015, which was significantly below the minimum bid price.
Impact on Shareholders
- Each shareholder will receive 72 additional shares for every share they currently own.
- The number of authorized shares will increase from 100,000,000 to 7,200,000,000.
- The cash and market value of shareholders’ holdings will increase proportionally.
- The reverse stock split is not expected to have any impact on the voting rights of shareholders.
Impact on the World
The Reverse Stock Split may have several impacts on the broader world:
- Increased liquidity: The reverse stock split may increase the liquidity of AEON’s common stock, making it easier for investors to buy and sell shares.
- Improved perception: A higher stock price may improve the perception of AEON as a viable investment opportunity, potentially attracting new investors.
- Potential dilution: The reverse stock split may dilute the ownership stakes of existing shareholders, although this is not expected to significantly impact their voting power.
Conclusion
AEON Biopharma’s decision to implement a 1-for-72 reverse stock split is an important move to maintain compliance with the NYSE American’s listing requirements and policies. The Reverse Stock Split will result in each shareholder receiving 72 additional shares for every share they currently own, and the number of authorized shares will increase significantly. The impact on shareholders includes increased liquidity, improved perception, and potential dilution. Additionally, the Reverse Stock Split may have broader implications for the market, including increased liquidity and improved perception of AEON as an investment opportunity.
As a clinical-stage biopharmaceutical company focused on developing a botulinum toxin complex under the 351(k) biosimilar pathway, AEON Biopharma continues to make strides in the development of novel therapeutics for various neuromuscular disorders. The Reverse Stock Split is an important step in securing the company’s future on the NYSE American and maintaining investor confidence.
AEON Biopharma’s dedication to advancing its pipeline and delivering innovative therapeutics to patients is a testament to its commitment to improving the lives of those affected by neuromuscular disorders. With a strong focus on development and a solid foundation, AEON Biopharma is poised to make a significant impact on the healthcare industry.
