Evelo Biosciences Boosts Stock Value with Reverse Split Move

Evelo Biosciences, Inc. (Nasdaq: EVLO), a clinical-stage biotechnology company developing an innovative platform of oral inflammation-combating medicines that target the small intestinal axis (SINTAX), today announced that its Board of Directors approved a 1-for-20 reverse stock split of its common stock. The reverse stock split will take effect today, June 29, 2023, after the close of trading on The Nasdaq Global Select Market. With the split, the Company’s common stock is expected to begin trading on a new split-adjusted basis when the markets open on June 30, 2023, with the same existing trading symbol “EVLO”. The new CUSIP number for the Company’s common stock following the split will be 299734 202.

At its annual stockholder meeting on June 8, 2023, the Company’s stockholders gave their approval for a 1-for-20 reverse stock split, with the goal of increasing the per share market price of the Company’s common stock to meet the minimum per share bid price requirement for continued listing on The Nasdaq Global Select Market. On June 27, 2023, the Board of Directors then put the decisive stamp of approval on the reverse stock split so the Company could continue to list on the Nasdaq Global Select Market.

Every 20 shares of the Company’s existing stock will be automatically combined into a single new share, as part of a reverse stock split! Not only will the exercise prices and number of shares in equity awards be proportionately adjusted, but the same goes for the stock warrants and equity incentive plans. Don’t worry, though: the common stock that comes out of this split will still remain fully paid and non-assessable. And, as a bonus, no changes will be made to the number of authorized shares or the par value of the stock.

The reverse stock split will not result in fractional shares for stockholders. However, these stockholders will be compensated with a cash payment, equal to the fractional shares multiplied by the closing sales price of the common stock (as adjusted for the reverse stock split). All of this will be taking place on the last trading day preceding the effective time of the reverse stock split, as seen on The Nasdaq Global Select Market.

The Company’s transfer agent, American Stock Transfer & Trust Company, LLC (“AST”), is ready to launch the upcoming reverse stock split – and it’s time for all stockholders to prepare for the change! Those with book-entry shares or who hold their stocks through a bank, broker, or other nominee don’t need to take any action.

However, stockholders of record with pre-split certificates will receive a letter of transmittal from AST with instructions on how to surrender those old certificates. Once you receive that letter, you can send in your current pre-split certificates for exchange. As a bonus, post-split stockholders of record will receive their new shares in book-entry form and a statement from AST will accompany their common stock ownership after the split. Hurry and get ready for this exciting transition!

About Evelo Biosciences

Evelo Biosciences is revolutionizing how inflammatory diseases are treated by developing a completely novel platform of orally delivered medicines with anti-inflammatory effects that act on the small intestine axis, called SINTAX. We believe this approach could result in therapies that are more effective, safe, well-tolerated, and affordable.

Our investigational medicines use single strains of microbes or their extracellular vesicles (EVs) to target and modulate inflammation throughout the body, potentially offering new hope for millions of people suffering from debilitating inflammatory diseases ranging from psoriatic and other forms of arthritis, asthma, allergy and inflammatory bowel disease.

Forward Looking Statements

The Company is pleased to announce that it has taken steps to implement a reverse stock split, which will affect the timing of the Company’s share price. This split has the potential to help the Company meet the minimum per share bid price requirement for continued listing on The Nasdaq Global Select Market, allowing shareholders to benefit from its success. We look forward to this transformative step, and the potential this split has to benefit our shareholders going forward.

The future is unpredictable and uncertain, but we remain hopeful about the potential of our common stock. Despite the volatility it may experience, we remain committed to remaining listed on The Nasdaq Global Select Market. However, important factors such as those discussed in our Quarterly Report on Form 10-Q for the three months ended March 31, 2023, and our other reports filed with the U.S. Securities and Exchange Commission, could impact our results. No promises or guarantees are made, but we will remain ever vigilant and make decisions that secure the best possible future for us. Our commitment to long-term success will shape our path forward.

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