Company: BGLC
Filing Date: 2025-02-27
Form Type: DEF 14A
Source: 0001477932-25-001335
Chunk: 16

Company: BioNexus Gene Lab Corp
Filing Date: 2025-02-27
Form: DEF 14A
Chunk 16
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 the Nasdaq Capital Market. Accordingly, the Board believes that maintaining Nasdaq listing qualifications for our Common Stock, can help attract, retain, and motivate employees.

Risks Associated with the Reverse Stock Split

The Reverse Stock Split May Not Result in an Increased Price of our Common Stock over the Medium or Long-Term. As notedabove, one principal purpose of the Reverse Stock Split is to increase the trading price of our Common Stock tomeet the minimum stock price standards of the Nasdaq Capital Market. However, the effect of the Reverse Stock Split on the market price of our Common Stock cannot be predicted with any certainty, and we cannot assure you that the Reverse Stock Split will accomplish this objective for any meaningful period of time, or at all. While we expect that the reduction in the number of outstanding shares of Common Stock will proportionally increase the market price of our Common Stock, we cannot assure you that the Reverse Stock Split will increase the market price of our Common Stock by a multiple of the Reverse Stock Split ratio, or result in any permanent or sustained increase in the market price of our Common Stock. The market price of our Common Stock may be affected by other factors which may be unrelated to the number of shares outstanding, including the Company’s business and financial performance, general market conditions, and prospects for future success.

The Reverse Stock Split May Decrease the Liquidity of our Common Stock. The Board believes that theReverse Stock Split may result in an increase in the market price of our Common Stock, which could lead toincreased interest in our Common Stock and possibly promote greater liquidity for our stockholders. However,the Reverse Stock Split will also reduce the total number of outstanding shares of Common Stock, which maylead to reduced trading and a smaller number of market makers for our Common Stock, particularly if the priceper share of our Common Stock does not increase as a result of the Reverse Stock Split.

The Reverse Stock Split May Result in Some Stockholders Owning “Odd Lots” That May Be More Difficult to Sell or Require Greater Transaction Costs per Share to Sell.If the Reverse Stock Split is implemented, itwill increase the number of stockholders who own “odd lots” of less than 100 shares of Common Stock. Apurchase or sale of less than 100 shares of Common Stock (an “odd lot” transaction) may result in incrementallyhigher trading costs through certain brokers, particularly “full service” brokers. Therefore, those stockholderswho own fewer than 100 shares of Common Stock following the Reverse Stock Split may be required to payhigher transaction