Verastem Oncology (NASDAQ: VSTM) , a biopharmaceutical company dedicated to advancing cancer treatments, announced on Wednesday that it will implement a 1-for-12 reverse stock split of its common stock.

This action was approved by the company's stockholders at the Annual Meeting of Stockholders held on 15 May 2023. The reverse stock split aims to increase the per share trading price and meet the price requirement for continued listing on the Nasdaq Global Market. It also intends to attract a broader range of investors. The reverse stock split will be effective at 5:00 p.m. Eastern Time on 31 May 2023, and the company's common stock will trade on the Nasdaq Capital Market on a split-adjusted basis starting 1 June 2023, under the ticker symbol 'VSTM'.

Under the reverse stock split, every 12 shares of common stock will be converted into one share at the Effective Time. This will impact all stockholders equally, maintaining their percentage interest in the company's equity. Fractional shares will be cashed out at the closing price on 30 May 2023. The number of outstanding common shares will decrease from approximately 200,872,633 shares to around 16,739,386 shares. Adjustments will be made to stock options, restricted stock units, preferred stock, and their respective exercise prices. The par value of the common stock will remain unchanged at USD0.0001 per share, and the authorized number of shares will not be affected.

Computershare Trust Company, N.A. will serve as the transfer agent for the reverse stock split.