Shares of FibroBiologics Inc (NASDAQ:FBLG) plunged 22.2% in after-hours trading Wednesday after the company disclosed plans for a 1-for-20 reverse stock split.
The clinical-stage biotechnology company said its board of directors approved the transaction, which will take effect at 12:01 a.m. Eastern Time on March 30, 2026. The company will begin trading on a split-adjusted basis on The Nasdaq Capital Market on Monday, March 30, 2026.
Under the terms of the reverse split, every 20 shares of FibroBiologics' common stock will automatically be combined into one share at the effective time. Management said the move will reduce the number of outstanding shares from 70,256,883 to approximately 3,512,845, subject to adjustment for fractional shares.
Stockholders previously approved the reverse split at a special meeting held on February 20, 2026. In its announcement, the board indicated the reverse split was intended to help the company regain compliance with Nasdaq's minimum bid price requirement and to broaden potential investor interest.
The company outlined how fractional shares will be handled: no fractional shares will be issued. Any fractional share that would result from the combination will be rounded up to the nearest whole share. FibroBiologics emphasized that the reverse split will not change any stockholder's percentage ownership interest in the company, except for any adjustments that result from rounding of fractional shares.
FibroBiologics noted that the number of authorized shares of common stock and preferred stock under the company's amended and restated certificate of incorporation will remain unchanged as a result of the reverse split. The company also said the split will proportionately adjust the number of shares available under its equity incentive plans and will adjust the exercise price and number of shares underlying outstanding stock options, warrants, and other equity awards on a pro rata basis.
VStock Transfer, LLC will act as the exchange agent for the reverse stock split. Following the split, the company's common stock will carry a new CUSIP number of 31573L204.
The announcement followed market hours and was met with a sharp decline in the stock price. The company characterized the reverse split as a measure to address Nasdaq listing requirements and to potentially expand the investor base.
Context and next steps
The reverse split becomes effective at 12:01 a.m. Eastern Time on March 30, 2026, with split-adjusted trading to start on Nasdaq that same day. Shareholders will see their holdings automatically combined at the 1-for-20 ratio, with fractional shares rounded up to whole shares as described.