Vistagen (Nasdaq: VTGN), a late clinical-stage biopharmaceutical company focused on CNS disorders, on Tuesday announced the implementation of a stockholder-approved reverse stock split.

This split will consolidate outstanding shares at a ratio of one-for-thirty, approved unanimously by the board of directors. Trading of Vistagen common stock on the Nasdaq Capital Market will commence on a split-adjusted basis on 7 June 2023. The company's ticker symbol remains 'VTGN', but with a new CUSIP number, 92840H400.

Objectives behind the reverse stock split include re-establishing compliance with Nasdaq's minimum bid price requirement, increasing market awareness of the company and its six clinical-stage drug candidates, and expanding the investor base to include institutional investors and sell-side research analysts in the healthcare sector.

The split will automatically consolidate every thirty shares into one share of Vistagen common stock, with adjustments made to outstanding options and warrants proportionately. Fractional shares will be rounded up to the nearest whole share. Following the split, Vistagen will have approximately 7,310,900 shares of common stock outstanding.

Computershare Trust Company, N.A. will serve as the exchange agent for the reverse stock split and stockholders holding shares in book-entry form or brokerage accounts do not need to take any action. Instructions for holders of shares in certificate form will be provided by Computershare.

Vistagen said it aims to transform the treatment landscape for anxiety, depression and CNS disorders with its pipeline of therapeutics. The company's clinical-stage product candidates, including pherines and AV-101, hold the potential for faster-acting, safer alternatives to existing treatments.