Company: BGLC
Filing Date: 2025-02-10
Form Type: PRE 14A
Source: 0001477932-25-000832
Chunk: 22

Company: BioNexus Gene Lab Corp
Filing Date: 2025-02-10
Form: PRE 14A
Chunk 22
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 existing stockholders may be greater than would occur had the Reverse Stock Split not been effected. Because our stockholders have no preemptive rights to purchase or subscribe for any of our unissued shares of Common Stock, the future issuance of additional shares of Common Stock will reduce our current stockholders’ percentage ownership interest in the total outstanding shares of Common Stock. In the absence of a proportionate increase in our future earnings and book value, an increase in the number of our outstanding shares of Common Stock would dilute our projected future earnings per share, if any, and book value per share of all our outstanding shares of Common Stock. If these factors were reflected in the price per share of Common Stock, the potential realizable value of a stockholder’s investment could be adversely affected. An issuance of additional shares could therefore have an adverse effect on the potential realizable value of a stockholder’s investment.

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Mechanics of the Reverse Stock Split

If the Reverse Stock Split is approved and effected, beginning on the effective date of the Reverse Stock Split, each certificate representing pre-split shares will, until surrendered and exchanged as described below, for all corporate purposes, be deemed to represent, respectively, only the number of post-split shares.

Exchange of Stock Certificates and Cash Out of Fractional Shares

Shortly after the Reverse Stock Split becomes effective, stockholders will be notified and offered the opportunity at their own expense to surrender their current certificates to our stock transfer agent, Securities Transfer Corporation, in exchange for the issuance of new certificates reflecting the Reverse Stock Split in accordance with the procedures to be set forth in a letter of transmittal to be sent by our stock transfer agent. Under Wyoming law, the Company is entitled to cash out fractional shares in exchange for “fair value” of such fractional shares. Therefore, stockholders holding fractional shares will receive a cash payment for such shares instead of receiving whole shares. Cash payments for fractional shares will be based on the daily Volume Weighted Average Price (VWAP) of the Company's Common Stock on Nasdaq for the ten (10) trading days immediately preceding the effective date of the Reverse Stock Split, multiplied by such fractional share, and the fractional shares will be canceled.

After the Reverse Stock Split, holders of fractional shares will have no further interest in the Company with respect to the cashed-out shares, which will then be void. These shares will no longer entitle the holder the right to vote as a shareholder or share in the Company’s assets, earnings, or profits or in any dividends paid