Bright Health has finalized a 1-to-80 reverse inventory break up to lift its share worth above the brink 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 via a filing with the Securities and Alternate Fee that it was looking for shareholder approval for the break up in March.
Brilliant Well being didn’t instantly reply to a request for remark.
THE LARGER TREND
Brilliant Well being hit the public markets in June 2021, a few yr 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 will not provide particular person and household well being plans via its insurtech Brilliant HealthCare subsequent yr and is chopping Medicare Benefit merchandise outdoors of California and Florida.
Fierce Healthcare reported in March that the corporate’s administration group gave themselves over $4 million in bonuses after shedding $1.6 billion in 2022, and Brilliant Well being executives informed buyers $300 million should be raised by the tip 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, Brilliant Well being’s chief monetary officer, additionally introduced she was stepping all the way down to pursue different alternatives.
