Helius Medical Technologies Announces Reverse Stock Split

Rhea-AI Summary

Helius Medical Technologies has announced a 1-for-15 reverse stock split of its Class A common stock, effective May 1, 2025. The split was approved by stockholders on April 21, 2025, allowing a ratio range of 1-for-2 to 1-for-30 to maintain Nasdaq listing compliance.

Starting May 2, 2025, the company's stock will trade on a split-adjusted basis under the same symbol "HSDT" on the Nasdaq Capital Market. The reverse split will reduce outstanding shares from approximately 7.9 million to 0.5 million, while maintaining the authorized share count at 150 million.

Key changes include:

• Every 15 shares will convert to one share
• $0.001 par value remains unchanged
• Fractional shares will be rounded down with cash compensation
• New CUSIP number: 42328V 884
• Proportional adjustments to stock options and warrants

Positive

• None.

Negative

• 1-for-15 reverse stock split indicates potential share price compliance issues with Nasdaq listing requirements
• Significant share reduction from 7.9M to 0.5M shares outstanding may impact stock liquidity
• Reverse split could be viewed as a negative signal by market participants
• Stock options and warrants will have higher exercise prices, potentially reducing their attractiveness

Insights

Financial Restructuring Analyst

Helius implements 1-for-15 reverse split to maintain Nasdaq listing, reducing shares from 7.9M to 0.5M while preserving market value.

Helius Medical's announced 1-for-15 reverse stock split is a significant capital structure adjustment designed to maintain Nasdaq compliance. This mechanical share consolidation will reduce outstanding shares from approximately 7.9 million to 0.5 million while preserving the same overall company market capitalization.

This maneuver addresses Nasdaq's continued listing requirements, which typically include minimum share price thresholds (commonly $1.00). The board selected the 1-for-15 ratio from their authorized range of 1-for-2 to 1-for-30, striking a balance between sufficiently raising the share price and not creating excessively high per-share values.

For shareholders, each 15 shares will automatically convert to one share, with fractional shares being cashed out based on the pre-split closing price. All stock options and warrants will see proportionate adjustments to their exercise prices and the number of shares they represent.

Notable is the substantial gap between the new 0.5 million shares outstanding and the unchanged 150 million authorized shares. This creates significant future issuance capacity that could potentially be utilized for capital raising, acquisitions, or other corporate purposes.

While reverse splits are technical adjustments that don't directly change a company's fundamental value, they often signal that share prices have declined to problematic levels. The company is taking appropriate action to preserve its Nasdaq listing, which provides important benefits including trading liquidity, market visibility, and access to institutional investors.

NEWTOWN, Pa., April 30, 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-15 reverse split of its Class A common stock, par value $0.001 (“common stock”), effective at 5:00 pm Eastern time on May 1, 2025. Beginning on May 2, 2025, the Company’s common stock will trade on The Nasdaq Capital Market on a split adjusted basis.

At the Company’s annual meeting of stockholders on April 21, 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-30 to be determined at the discretion of our Board of Directors, whereby each outstanding 2 to 30 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-15. As a result of the reverse stock split, every 15 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 884.

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 7.9 million to approximately 0.5 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 March 25, 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

What is the ratio of Helius Medical (HSDT) reverse stock split in May 2025?

Helius Medical (HSDT) will implement a 1-for-15 reverse stock split effective May 1, 2025, meaning every 15 shares will be converted into 1 share of common stock.

How many shares will HSDT have outstanding after the May 2025 reverse split?

After the reverse split, HSDT's outstanding shares will be reduced from approximately 7.9 million to approximately 0.5 million shares, while maintaining 150 million authorized shares.

When will HSDT stock trade on split-adjusted basis on Nasdaq?

HSDT stock will begin trading on a split-adjusted basis on The Nasdaq Capital Market starting May 2, 2025.

What happens to fractional shares in HSDT's 2025 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.

How will HSDT's reverse split affect stock options and warrants?

The reverse split will reduce the number of shares issuable upon conversion of stock options and warrants proportionally, and will increase their conversion and exercise prices accordingly.

What is the new CUSIP number for HSDT stock after the reverse split?

The new CUSIP number for HSDT common stock following the May 2025 reverse split is 42328V 884.