Company: BGLC
Filing Date: 2025-02-28
Form Type: DEFR14A
Source: 0001477932-25-001339
Chunk: 17

Company: BioNexus Gene Lab Corp
Filing Date: 2025-02-28
Form: DEFR14A
Chunk 17
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 than 100 shares of Common Stock following the Reverse Stock Split may be required to payhigher transaction costs if they sell their Common Stock.

The Reverse Stock Split May Lead to a Decrease in our Overall Market Capitalization.The Reverse StockSplit may be viewed negatively by the market and, consequently, could lead to a decrease in our overall marketcapitalization. If the per share market price of our Common Stock does not increase in proportion to the ReverseStock Split ratio, or following such increase does not maintain or exceed such price, then the value of ourCompany, as measured by our market capitalization, will be reduced. Additionally, any reduction in our marketcapitalization may be magnified as a result of the smaller number of total shares of Common Stock outstandingfollowing the Reverse Stock Split.

Potential Consequences if the Reverse Stock Split Proposal is Not Approved

If the Reverse Stock Split Proposal is not approved by our stockholders, our Board will not have the authority to effect the Charter Amendment to, among other things, facilitate the continued listing of our Common Stock on the Nasdaq Capital Market by increasing the per share trading price of our Common Stock to help ensure a share price high enough to satisfy the $1.00 per share Minimum Bid Price Requirement. Any inability of our Board to effect the Reverse Stock Split could expose us to delisting from the Nasdaq Capital Market. In addition, if we need additional capital to fund operations and at such time do not have a sufficient number of authorized and unissued shares of Common Stock to raise such additional capital, our business would be materially and adversely affected. If stockholder approval for the Reverse Stock Split is not obtained, the number of shares of Common Stock that are issued will not change and the anticipated benefits of the Reverse Stock Split described above will not be achieved.

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Treatment of Fractional Shares in the Reverse Stock Split

The Company will not issue fractional shares in connection with the Reverse Stock Split. Instead:

| · | For stockholders holding shares in registered form (directly with the Company), the Company’s transfer agent, Securities Transfer Corporation, will act as the exchange agent and will be responsible for issuing cash payments for fractional shares.                                                             |
| · | For stockholders holding shares through a brokerage account (street name), the Depository Trust Company (DTC) and brokers will handle fractional shares on behalf of their clients. These stockholders will receive cash payments directly from their brokerage firms, in accordance with their brokers’ policies. |
| · | The repurchase price for fractional shares will be determined based