Company: BGLC
Filing Date: 2025-02-10
Form Type: PRE 14A
Source: 0001477932-25-000832
Chunk: 17

Company: BioNexus Gene Lab Corp
Filing Date: 2025-02-10
Form: PRE 14A
Chunk 17
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, 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 on the daily Volume Weighted Average Price (VWAP) of our common stock, calculated for the ten (10) trading days immediately preceding the effective date of the Reverse Stock Split.                                                           |
| · | Stockholders entitled to receive cash for fractional shares should receive payments within ten (10) business days following the effective date of the Reverse Stock Split.                                                                                                                                         |
| · | The Board has reviewed this valuation method and determined that the use of a daily Volume Weighted Average Price (VWAP) provides a fair and reasonable price to shareholders, mitigating potential volatility concerns from using a single-day closing price.                                                     |

Determination of the Reverse Stock Split Ratio

The Board believes that stockholder approval of a range of potential Reverse Stock Split ratios is in the best interests of our Company and stockholders because it is not possible to predict market conditions at the time the Reverse Stock Split would be implemented