Bright Health has finalized a 1-to-80 reverse stock split to raise its share price above the threshold required to remain on the New York Stock Exchange.
The reverse split raised the company’s share price to $13.57 at NYSE’s opening on Monday, up from $0.21 at the close on Friday.
On the New York Stock Exchange, a company risks being delisted if its shares don’t reach $1 and hold that value for 30 consecutive days.
The company announced through a filing with the Securities and Exchange Commission that it was seeking shareholder approval for the split in March.
Bright Health did not immediately respond to a request for comment.
THE LARGER TREND
Bright Health hit the public markets in June 2021, about a year after it raised a $500 million Series E round. In December 2022, the company scored a hefty $750 million investment from Cigna Ventures, the venture capital arm of insurer Cigna.
Still, the company has struggled financially, and in October of last year, it announced it would not offer individual and family health plans through its insurtech Bright HealthCare next year and is cutting Medicare Advantage products outside of California and Florida.
Fierce Healthcare reported in March that the company’s management team gave themselves over $4 million in bonuses after losing $1.6 billion in 2022, and Bright Health executives told investors $300 million must be raised by the end of April to avoid bankruptcy.
Earlier this month, the Minneapolis-based company announced it was exploring a sale of its California Medicare Advantage insurance business. Cathy Smith, Bright Health’s chief financial officer, also announced she was stepping down to pursue other opportunities.