Bright Health seeks reverse stock split in effort to retain stock exchange listing

Bright Health Group is asking shareholders to OK a reverse stock split as it tries to remain in compliance with stock exchange listing standards, the Star Tribune reported March 28. 

The insurance company was warned by the New York Stock Exchange in December that it faces delisting after its average closing price fell below the $1 per share threshold. It was given six months for the Dec. 6 notice to regain compliance. 

Shareholders are being asked to approve a reverse stock split that could range from 1-for-15 up to 1-for-80, according to the report. If approved, Bright Health's board of directors would determine the ratio. 

Under a 1-for-80 reverse stock split, 80 shares of stock would be reduced to one share, according to the report. The number of outstanding Bright Health shares would be reduced from 635.1 million to 7.9 million. 

The company said in a financial filing that it believes the reverse stock split will make its common stock "more attractive to a broader range of institutional and other investors," according to the report. 

Bright Health's annual meeting is slated for May 4. If the request is approved, the reverse stock split could be effective the following day. 

The company went public in June 2021 at $18 per share. Bright Health's stock closed March 27 at 22 cents per share, according to the report. 

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