FibroBiologics Stock Plummets Due to Reverse Split Plan

LootboxPhobia · 2026-03-26T03:33:48+00:00

FibroBiologics Inc announced a 1-for-20 reverse stock split, scheduled to take effect on March 30, 2026, aimed at complying with Nasdaq listing requirements. The stock price declined 22.2% following the announcement. The reverse split will reduce outstanding shares from approximately 70.25 million to approximately 3.51 million, with shareholders' ownership percentages remaining unchanged.

LootboxPhobia

2026-03-26 03:33:48

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Investing.com – FibroBiologics Inc (NASDAQ:FBLG) stock dropped 22.2% in after-hours trading on Wednesday after the company announced a 1-for-20 reverse stock split plan.

The clinical-stage biotech company stated that its board of directors has approved the reverse split plan, which will take effect at 12:01 a.m. Eastern Time on March 30, 2026. Trading on the Nasdaq Capital Market will begin on March 30, 2026, adjusted for the split.

Upon effectiveness, every 20 shares of common stock of FibroBiologics will automatically consolidate into 1 share. This reverse split will reduce the number of outstanding shares from 70,256,883 to approximately 3,512,845, subject to rounding for fractional shares.

The reverse split was previously approved by shareholders at a special meeting held on February 20, 2026. The company’s board stated that the move aims to restore the minimum bid price requirement for maintaining Nasdaq listing eligibility and to broaden potential investor interest.

The reverse split will not issue any fractional shares. any fractional shares resulting from the split will be rounded up to the nearest whole share. Aside from adjustments related to fractional shares, the reverse split will not change any shareholder’s percentage ownership in the company.

According to the company’s amended and restated Certificate of Incorporation, the authorized number of common and preferred shares will not decrease as a result of the reverse split. The split will also proportionally adjust the number of shares available under the company’s equity incentive plan, as well as the exercise prices and number of shares underlying unexercised stock options, warrants, and other equity awards.

VStock Transfer, LLC is serving as the exchange agent for the reverse split. After the split, the new CUSIP number for the company’s common stock will be 31573L204.

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