Stock Markets May 22, 2026 04:30 PM

Scynexis Shares Drop After Board Approves 1-for-8 Reverse Split to Meet Nasdaq Requirement

Clinical-stage biotech to combine every eight shares into one as it seeks to restore compliance with Nasdaq minimum bid rule

By Derek Hwang SCYX

Scynexis Inc. (SCYX) saw its shares decline about 7% in after-hours trading following the company’s announcement that it will execute a 1-for-8 reverse stock split, effective May 29, 2026, and begin trading on a split-adjusted basis June 1, 2026. The corporate action was approved by stockholders at a Special Meeting on May 19, 2026, and is intended to bring the company into compliance with Nasdaq Capital Market minimum bid price requirements.

Scynexis Shares Drop After Board Approves 1-for-8 Reverse Split to Meet Nasdaq Requirement
SCYX

Key Points

  • Scynexis announced a 1-for-8 reverse stock split to be effective May 29, 2026, with split-adjusted trading beginning June 1, 2026 under the existing SCYX ticker.
  • The reverse split was approved by stockholders at a Special Meeting on May 19, 2026; the board established the final ratio to meet Nasdaq Capital Market minimum bid price requirements.
  • Outstanding shares are expected to decrease from approximately 79.5 million to about 9.9 million, and authorized shares will fall from 150 million to 18.75 million; equity awards and warrants will be adjusted proportionately.

Shares of Scynexis Inc. (NASDAQ: SCYX) slipped roughly 7% in after-hours trading Friday after the clinical-stage biotechnology firm revealed plans for a 1-for-8 reverse stock split. The company said the split will take effect on May 29, 2026, with split-adjusted trading commencing on June 1, 2026, under the same ticker symbol, SCYX.


The reverse split was approved by stockholders at a Special Meeting held on May 19, 2026, with the final ratio set by the board of directors. Scynexis stated the purpose of the corporate action is to bring the company into compliance with the Nasdaq Capital Market’s minimum bid price requirement for continued listing.

At the effective time of the split, every eight shares of issued and outstanding common stock will be combined into one share. On a pro forma basis, the company expects its outstanding common shares to fall from approximately 79.5 million to approximately 9.9 million. Concurrently, the company’s authorized share count will be reduced from 150 million to 18.75 million, while the par value per share will remain unchanged.

The firm also detailed how the split will affect equity awards and convertible instruments. Outstanding stock options, restricted stock units and warrants will be adjusted in proportion to the split, with a corresponding proportional increase in exercise prices. Scynexis noted that no fractional shares will be issued; stockholders who would otherwise be entitled to fractional shares will instead receive cash payments in lieu of fractional shares.

Equiniti Trust Company has been named as the exchange agent to oversee the mechanics of the reverse split. The company added that shareholders holding their shares through banks, brokers or other nominees will have their positions automatically adjusted and will not need to take any action to effect the change.

The company confirmed that trading on a split-adjusted basis will begin June 1, 2026, under the existing SCYX ticker and that a new CUSIP number will be assigned for the post-split shares.


Scynexis’ announcement outlined the timing, shareholder approval and administrative details of the reverse split, and described how outstanding equity-based instruments and fractional share situations will be handled as part of the corporate action.

Risks

  • Market reaction to the reverse stock split: Scynexis’ shares fell about 7% in after-hours trading following the announcement, indicating potential short-term volatility in the biotech and small-cap stock sectors.
  • Fractional-share cashouts: Stockholders who would otherwise receive fractional shares will instead obtain cash payments, which may affect shareholder holdings and administrative processing in capital markets and brokerage services.
  • Listing compliance outcome: While the split is intended to address the Nasdaq minimum bid price requirement, the announcement does not guarantee any future trading price or long-term compliance, presenting continued uncertainty for investors and market participants in the biotech sector.

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