Glowing Health completed a 1 to 80 stock split to raise its share price above the threshold required to remain on the New York Stock Exchange.
The reverse split increased the value of the company share price at $13.57 at the NYSE’s Monday open, from $0.21 at Friday’s close.
On the New York Stock Exchange, a company risks delisting if its shares do not reach $1 and remain at that value for 30 consecutive days.
The company announced through a deposit with the Securities and Exchange Commission that it was seeking shareholder approval for the spinoff in March.
Bright Health did not immediately respond to a request for comment.
THE GREAT TREND
Glowing Health hit public markets in June 2021, approximately one year after raising a $500 million Series E funding round. In December 2022, the company scored a heavy $750 million investment from Cigna Venturesthe venture capital branch of the insurer Cigna.
However, the company experienced financial difficulties and in October last year he announced it would not offer individual and family health plans through its insurtech Bright HealthCare next year and will reduce Medicare Advantage products outside of California and Florida.
Fierce Health reported in March that the company’s management team gave itself more than $4 million in bonuses after losing $1.6 billion in 2022, and Bright Health executives told investors that $300 million million had to be raised by the end of April to avoid bankruptcy.
Earlier this month, the Minneapolis-based company announced that it was considering selling its California Medicare Advantage insurance business. Catherine SmithChief Financial Officer of Bright Health, also announced that she is stepping down to pursue other opportunities.