Dynatronics Corporation (NASDAQ:DYNT), a leading manufacturer of athletic training, physical therapy, and rehabilitation products, today announced that it will effect a 1-for-5 reverse stock split of its outstanding common stock, effective at 5:00 p.m. (ET) on February 1, 2023. Dynatronics’ common stock will continue to trade on the NASDAQ under the symbol “DYNT” under a new CUSIP number, 268157500. Dynatronics’ common stock will begin trading on a reverse stock split-adjusted basis on the NASDAQ when the market opens on February 2, 2023.
The reverse stock split was implemented to bring the Company into compliance with NASDAQ’s minimum bid price requirement. However, there can be no assurances that the Company will be able to remain in compliance with the minimum bid price requirement over time, or that it will be successful in maintaining compliance with the other NASDAQ continued listing requirements.
As a result of the reverse stock split, every five pre-split shares of common stock outstanding will automatically combine into one new share of common stock without any action on the part of the shareholders. Following the consummation of the reverse stock split, the number of issued and outstanding shares of common stock will be reduced from approximately 19.6 million shares to approximately 3.9 million shares.
The reverse stock split will have no impact on the number of shares of the Company’s Series A preferred stock or Series B preferred stock issued and outstanding. However, the conversion price of the outstanding Series A preferred stock and Series B preferred stock will increase and the number of shares of common stock issuable upon conversion of such preferred stock will decrease in proportion to the 1-for-5 split ratio. The number of shares of common stock issuable upon conversion of the Series A preferred will decrease from 1,992,000 shares to 398,400 shares, and the number of shares of common stock issuable upon conversion of the Series B preferred will decrease from 1,359,000 shares to 271,800 shares, in each case subject to future adjustment as provided in the designation of preferences, rights and limitations of the applicable series of preferred stock.
Additional information concerning the reverse stock split can be found in the Company’s definitive proxy statement filed with the Securities and Exchange Commission on October 5, 2022.
