Helius Medical Technologies Announces Reverse Stock Split

Rhea-AI Summary

Helius Medical Technologies (Nasdaq:HSDT) has announced a 1-for-50 reverse stock split of its Class A common stock, effective June 30, 2025. The split will reduce outstanding shares from approximately 33.8 million to 0.7 million, while maintaining the authorized share count at 150 million.

Trading on the split-adjusted basis will begin July 1, 2025, under the same symbol "HSDT" but with a new CUSIP number (42328V 876). The reverse split was approved by stockholders on May 23, 2025, authorizing a ratio range of 1-for-2 to 1-for-250, with the final 1-for-50 ratio determined by the Board of Directors.

Positive

• Helps maintain Nasdaq listing compliance
• Potential to attract institutional investors with higher share price

Negative

• Significant reduction in total outstanding shares could impact liquidity
• No fundamental change in company value or market capitalization
• May signal company distress or difficulties

Insights

Financial Restructuring Analyst

Helius announces 1-for-50 reverse split to maintain Nasdaq listing, reducing shares from 33.8M to 0.7M without changing authorized share count.

Helius Medical Technologies has announced a significant 1-for-50 reverse stock split effective June 30, 2025. This corporate action will dramatically reduce the company's outstanding shares from approximately 33.8 million to 0.7 million while maintaining the total authorized shares at 150 million.

This reverse split represents a clear attempt to regain Nasdaq compliance, likely addressing the exchange's $1 minimum bid requirement. By consolidating shares at this severe ratio (1-for-50), the company is taking aggressive action to maintain its listing status rather than face potential delisting.

Notably, the shareholders granted the Board authorization for a reverse split ratio between 1-for-2 and 1-for-250, with management ultimately selecting a relatively severe 1-for-50 ratio. This substantial reduction indicates significant downward pressure on the share price previously.

The unchanged authorized share count (150 million) compared to the new outstanding count (0.7 million) creates substantial potential dilution capacity - the company now has authorization for approximately 214 times its current outstanding shares. This provides extensive flexibility for future fundraising but could signal potential further dilution for current shareholders.

Investors should understand that while reverse splits don't inherently change company value, they often reflect underlying financial challenges. The fact that fractional shares will be cashed out indicates the company is streamlining its shareholder base during this recapitalization effort.

NEWTOWN, Pa., June 27, 2025 (GLOBE NEWSWIRE) -- Helius Medical Technologies, Inc. (Nasdaq:HSDT) (“Helius” or the “Company”), a neurotech company focused on delivering a novel therapeutic neuromodulation approach for balance and gait deficits, announced today a 1-for-50 reverse split of its Class A common stock, par value $0.001 (“common stock”), effective at 5:00 pm Eastern time on June 30, 2025. Beginning on July 1, 2025, the Company’s common stock will trade on The Nasdaq Capital Market on a split adjusted basis.

At the Company’s special meeting of stockholders on May 23, 2025, the stockholders approved a proposal to amend the Company’s Certificate of Incorporation to effect a reverse split of the Company’s outstanding common stock at a ratio in the range of 1-for-2 to 1-for-250 to be determined at the discretion of our Board of Directors, whereby each outstanding 2 to 250 shares would be combined, converted and changed into 1 share of common stock, to enable the Company to comply with the Nasdaq Stock Market’s continued listing requirements. Subsequently, the Board of Directors approved the reverse split at a ratio of 1-for-50. As a result of the reverse stock split, every 50 shares of the company's common stock issued and outstanding will be automatically converted into one share of common stock, with no change in the $0.001 par value per share or authorized number of shares of common stock.

Upon effectiveness, the reverse stock split will cause a reduction in the number of shares of common stock outstanding and issuable upon the conversion of the Company’s outstanding stock options and warrants in proportion to the ratio of the reverse split and will cause a proportionate increase in the conversion and exercise prices of such stock options and warrants. Any fraction of a share of common stock that would be created as a result of the Reverse Stock Split will be rounded down to the next whole share and the stockholder will receive cash equal to the market value of the fractional share, determined by multiplying such fraction by the closing sales price of the Company’s common stock as reported on Nasdaq on the last trading day before the Reverse Stock Split becomes effective (on a split-adjusted basis).

The Company’s common stock will continue to trade on The Nasdaq Capital Market under the symbol “HSDT.” The new CUSIP number for the common stock following the reverse split is 42328V 876.

The number of authorized shares of the Company’s common stock will remain at 150 million, while the number of outstanding shares will be reduced from approximately 33.8 million to approximately 0.7 million.

Additional information about the reverse stock split can be found in the Company’s definitive proxy statement filed with the Securities and Exchange Commission on May 2, 2025, a copy of which is also available on the Company’s website under the Investor Relations page.

About Helius Medical Technologies, Inc.

Helius Medical Technologies is a leading neurotech company in the medical device field focused on neurologic deficits using orally applied technology platform that amplifies the brain’s ability to engage physiologic compensatory mechanisms and promote neuroplasticity, improving the lives of people dealing with neurologic diseases. The Company’s first commercial product is the Portable Neuromodulation Stimulator (PoNS^®). For more information about PoNS or Helius Medical Technologies, visit www.heliusmedical.com.

Investor Relations Contact:

Philip Trip Taylor
Gilmartin Group
investorrelations@heliusmedical.com

FAQ

When will Helius Medical Technologies (HSDT) reverse stock split take effect?

The 1-for-50 reverse stock split will take effect on June 30, 2025 at 5:00 pm Eastern time, with split-adjusted trading beginning on July 1, 2025.

What is the ratio of HSDT's reverse stock split?

Helius Medical Technologies will implement a 1-for-50 reverse stock split, meaning every 50 shares will be converted into one share of common stock.

How many shares will HSDT have outstanding after the reverse split?

After the reverse split, HSDT's outstanding shares will be reduced from approximately 33.8 million to 0.7 million shares.

Will HSDT's stock symbol change after the reverse split?

No, HSDT will continue trading on the Nasdaq Capital Market under the same symbol 'HSDT', but with a new CUSIP number (42328V 876).

What happens to fractional shares in HSDT's reverse split?

Fractional shares will be rounded down to the next whole share, and stockholders will receive cash equal to the market value of the fractional share based on the closing price before the split.