Company: BGLC
Filing Date: 2025-02-28
Form Type: DEFR14A
Source: 0001477932-25-001339
Chunk: 18

Company: BioNexus Gene Lab Corp
Filing Date: 2025-02-28
Form: DEFR14A
Chunk 18
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 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 multiplied by the fractional share.                        |
| · | 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. We believe that a range of Reverse Stock Split ratios provides us with the most flexibility to achieve the desired results of the Reverse Stock Split. The Reverse Stock Split ratio to be selected by our Board will not be more than 1-for-10.

The selection of the specific Reverse Stock Split ratio will be based on several factors, including, among other things:

| · | our ability to maintain the listing of our Common Stock on the Nasdaq Capital Market;                                 |
| · | the per share price of our Common Stock immediately prior to the Reverse Stock Split;                                 |
| · | the expected stability of the per share price of our Common Stock following the Reverse Stock Split;                  |
| · | the likelihood that the Reverse Stock Split will result in increased marketability and liquidity of our Common Stock; |
| · | prevailing market conditions;                                                                                         |
| · | general economic conditions in our industry; and                                                                      |
| · | our market capitalization before, and anticipated market capitalization after, the Reverse Stock Split.               |

We believe that granting our Board the authority to set the ratio for the Reverse Stock Split is essential because it allows us to take these factors into consideration and to react to changing market conditions. If the Board chooses to implement the Reverse Stock Split, the Company will make a public announcement regarding the determination of the Reverse Stock Split ratio.

Board Discretion to Effect the Reverse Stock Split

If the Reverse Stock Split Proposal is approved by our stockholders, the Board will have the discretion to implement the Reverse Stock Split or to not effect the Reverse Stock Split and to determine the Reverse Stock Split ratio.