Bright Health has finalized a 1-to-80 reverse inventory break up to lift its share value above the edge required to stay on the New York Inventory Alternate.
The reverse break up raised the corporate’s share price to $13.57 at NYSE’s opening on Monday, up from $0.21 on the shut on Friday.
On the New York Inventory Alternate, an organization dangers being delisted if its shares do not attain $1 and maintain that worth for 30 consecutive days.
The corporate introduced by way of a filing with the Securities and Alternate Fee that it was in search of shareholder approval for the break up in March.
Vibrant Well being didn’t instantly reply to a request for remark.
THE LARGER TREND
Vibrant Well being hit the public markets in June 2021, a few 12 months after it raised a $500 million Series E round. In December 2022, the corporate scored a hefty $750 million investment from Cigna Ventures, the enterprise capital arm of insurer Cigna.
Nonetheless, the corporate has struggled financially, and in October of last year, it announced it could not supply particular person and household well being plans by way of its insurtech Vibrant HealthCare subsequent 12 months and is slicing Medicare Benefit merchandise exterior of California and Florida.
Fierce Healthcare reported in March that the corporate’s administration workforce gave themselves over $4 million in bonuses after dropping $1.6 billion in 2022, and Vibrant Well being executives informed traders $300 million have to be raised by the top of April to keep away from chapter.
Earlier this month, the Minneapolis-based firm introduced it was exploring a sale of its California Medicare Advantage insurance business. Cathy Smith, Vibrant Well being’s chief monetary officer, additionally introduced she was stepping all the way down to pursue different alternatives.