Calyxt, Inc. (Nasdaq: CLXT), a leading agricultural biotechnology company, has announced a 1-for-10 reverse stock split, which will take effect on April 25, 2023. The reverse stock split was approved by Calyxt’s shareholders at the annual meeting held on June 1, 2022. The company plans to file an amendment to its certificate of incorporation to effectuate the reverse stock split after the close of trading on April 24, 2023.

Reduction in the Number of Outstanding Shares

Upon the reverse stock split’s effective date, every ten shares of Calyxt common stock issued and outstanding or held as treasury shares will be combined into one share of Calyxt common stock automatically. The reverse stock split will reduce the number of outstanding shares of Calyxt common stock from approximately 49.3 million to approximately 4.9 million. The company has clarified that this will not have any impact on the number of shares of Calyxt common stock authorized for issuance or on the par value of the company’s common stock.

Equity-Based Awards Proportionately Adjusted

Calyxt has stated that outstanding equity-based awards under its benefit plans will be proportionately adjusted in connection with the reverse stock split. The company has also confirmed that no fractional shares will be issued as a result of the reverse stock split. Any fractional shares that may result from the reverse stock split will be rounded up to the nearest whole share.

CUSIP Number Change

While Calyxt’s common stock will continue trading on the Nasdaq Capital Market (under the symbol “CLXT”), the company’s common stock will trade under a new CUSIP number starting on April 25, 2023. The company’s transfer agent, Broadridge Corporate Issuer Solutions, Inc., will maintain the book-entry records for the company’s common stock.

What do Shareholders Need to Do?

Registered stockholders holding pre-split shares of the company’s common stock electronically in book-entry form are not required to take any action to receive post-split shares. However, stockholders owning shares via a broker, bank, custodian, or other nominee will have their positions automatically adjusted to reflect the reverse stock split, subject to such broker’s particular processes, and will not be required to take any action in connection with the reverse stock split. Calyxt has encouraged such beneficial holders to contact their broker, bank, or custodian with any procedural questions.

What is Calyxt?

Calyxt is a leading agricultural biotechnology company that leverages its proprietary TALEN® gene editing technology to develop crops with healthier characteristics and superior functionality. The company’s mission is to produce high-quality food products while minimizing the environmental impact of farming.

Calyxt’s plant-based products include high oleic soybean oil, which has zero grams of trans-fat per serving, and high fiber wheat. The company’s new product, reduced saturated fat soybean oil, has also been approved for commercialization by the USDA.

Calyxt has been recognized for its innovative products, and in 2018, the company received the Frost & Sullivan North American New Product Innovation Award for its high oleic soybean oil.

In Conclusion

Calyxt’s 1-for-10 reverse stock split is expected to have a significant impact on the number of outstanding shares of Calyxt common stock. The company has taken this step to increase the per-share trading price of its common stock, which may make it more attractive to certain investors. Calyxt is a leader in the field of agricultural biotechnology and is known for its innovative plant-based products, which are designed to promote health and sustainability. The company’s TALEN® gene editing technology has enabled it to develop crops with healthier characteristics, such as high oleic soybean oil and high fiber wheat.

The reverse stock split will not have any impact on the number of shares of Calyxt common stock authorized for issuance or on the par value of the company’s common stock. However, outstanding equity-based awards under Calyxt’s benefit plans will be proportionately adjusted in connection with the reverse stock split. No fractional shares will be issued, and any fractional shares that may result from the reverse stock split will be rounded up to the nearest whole share.

Registered stockholders holding pre-split shares of Calyxt’s common stock electronically in book-entry form are not required to take any action to receive post-split shares. Stockholders owning shares via a broker, bank, custodian, or other nominee will have their positions automatically adjusted to reflect the reverse stock split and will not be required to take any action in connection with the reverse stock split.

Calyxt’s common stock will continue trading on the Nasdaq Capital Market under the symbol “CLXT,” but will trade under a new CUSIP number starting on April 25, 2023. The company’s transfer agent, Broadridge Corporate Issuer Solutions, Inc., will maintain the book-entry records for the company’s common stock.

In conclusion, the 1-for-10 reverse stock split announced by Calyxt is a significant move that is expected to impact the number of outstanding shares of the company’s common stock. This move will increase the per-share trading price of Calyxt’s common stock, which may make it more attractive to certain investors. Calyxt’s innovative products and TALEN® gene editing technology position it as a leader in the field of agricultural biotechnology, and the company’s focus on health and sustainability make it an exciting prospect for investors looking for growth opportunities in the agricultural sector.