NEW YORK, Oct. 14, 2020 (GLOBE NEWSWIRE) -- Conversion Labs, Inc. (OTCQB: CVLB), a direct-to-consumer telemedicine and wellness company, will effect a 1-for-5 reverse split of its common stock effective prior to the opening of the market today, Wednesday, October 14, 2020.
The reverse stock split was implemented by the company in connection with its previously announced application to uplist the company's common stock to the NASDAQ Capital Market (NASDAQ). The reverse stock split is an action intended to fulfill the stock price requirements for official listing on NASDAQ, which requires that the company's common stock must be at $4.00 or higher at the time of listing. There can be no assurance that the company will satisfy other applicable requirements for listing its common stock on NASDAQ or that the company's application to uplist its common stock will be approved.
The stock will begin trading on a post-split basis under the symbol “CVLBD.” After 20 business days, the stock will return to trading under the symbol “CVLB.”
“This reverse split is another major step toward our common stock being traded on a major U.S. exchange,” stated Conversion Labs’ CEO, Justin Schreiber. “We believe a Nasdaq listing will help increase our corporate visibility and broaden awareness of our success in the financial community, particularly with institutional and retail investors. We also expect it to provide our investors with greater liquidity and enhance shareholder value.
“These benefits will be timely, as we expect to soon announce a number of new telemedicine products that will leverage our strong customer growth and the vast market opportunities that continue to emerge in telehealth.”
As a result of the split, every five shares of issued and outstanding common stock will be exchanged for one share of common stock. Each stockholder’s percentage ownership interest in Conversion Labs and proportional voting power will remain unchanged, and the rights and privileges as the holders of the common stock will be unaffected.
The reverse stock split will reduce the number of shares of issued and outstanding common stock from 78,659,427 pre-split to approximately 15,731,885 post-split. Proportional adjustments will be made to any outstanding warrants or options.
Over the last year, Conversion Labs has seen an acceleration in its operational and financial performance. The company recently reported its annualized revenue run rate hit $46.8 million, as compared to $12.5 million for all of 2019—a more than three-fold increase.
About Conversion Labs
Conversion Labs, Inc. is a telemedicine company with a portfolio of online direct-to-consumer brands. The company’s brands combine virtual medical treatment with prescription medications and unique over-the-counter products. Its network of licensed physicians offers telemedicine services and direct-to-consumer pharmacy to consumers across the U.S. To learn more, visit Conversionlabs.com.
Important Cautions Regarding Forward-Looking Statements
This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended, regarding, among other things our plans, strategies and prospects -- both business and financial. Although we believe that our plans, intentions and expectations reflected in or suggested by these forward-looking statements are reasonable, we cannot assure you that we will achieve or realize these plans, intentions or expectations. Forward-looking statements are inherently subject to risks, uncertainties and assumptions. Many of the forward-looking statements contained in this news release may be identified by the use of forward-looking words such as "believe," "expect," "anticipate," "should," "planned," "will," "may," "intend," "estimated," and "potential," among others. Important factors that could cause actual results to differ materially from the forward-looking statements we make in this news release include market conditions and those set forth in reports or documents that we file from time to time with the United States Securities and Exchange Commission. All forward-looking statements attributable to Conversion Labs, Inc. or a person acting on its behalf are expressly qualified in their entirety by this cautionary language.
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Conversion Labs
Juan Manuel Piñeiro Dagnery
CFO
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