Brilliant Well being has finalized a 1-to-80 reverse inventory cut up to boost its share worth above the edge required to stay on the New York Inventory Trade.
The reverse cut up raised the corporate’s share worth to $13.57 at NYSE’s opening on Monday, up from $0.21 on the shut on Friday.
On the New York Inventory Trade, an organization dangers being delisted if its shares do not attain $1 and maintain that worth for 30 consecutive days.
The corporate introduced by means of a submitting with the Securities and Trade Fee that it was in search of shareholder approval for the cut up in March.
Brilliant Well being didn’t instantly reply to a request for remark.
THE LARGER TREND
Brilliant Well being hit the general public markets in June 2021, a couple of 12 months after it raised a $500 million Collection E spherical. In December 2022, the corporate scored a hefty $750 million funding from Cigna Ventures, the enterprise capital arm of insurer Cigna.
Nonetheless, the corporate has struggled financially, and in October of final 12 months, it introduced it will not supply particular person and household well being plans by means of its insurtech Brilliant HealthCare subsequent 12 months and is chopping Medicare Benefit merchandise outdoors of California and Florida.
Fierce Healthcare reported in March that the corporate’s administration workforce gave themselves over $4 million in bonuses after shedding $1.6 billion in 2022, and Brilliant Well being executives informed buyers $300 million have to be raised by the tip of April to keep away from chapter.
Earlier this month, the Minneapolis-based firm introduced it was exploring a sale of its California Medicare Benefit insurance coverage enterprise. Cathy Smith, Brilliant Well being’s chief monetary officer, additionally introduced she was stepping right down to pursue different alternatives.