BioNexus Gene Lab Corp. (NASDAQ:BGLC) Creates Series Z Preferred Stock to Facilitate Reverse Stock Split

On February 11, 2025, BioNexus Gene Lab Corp. filed a Form 8-K with the Securities and Exchange Commission, announcing the creation of its Series Z Convertible Preferred Stock. This innovative move by the company is aimed at increasing the likelihood of passing the Reverse Stock Split Proposal.

The creation of the Series Z Preferred Stock was authorized through the filing of Articles of Amendment to BioNexus Gene Lab Corp.’s Articles of Incorporation with the Wyoming Secretary of State. The Amendment allows for the issuance of one share of the Series Z Convertible Preferred Stock.

As per the details provided in the filing, the one outstanding share of Series Z Preferred Stock carries five billion votes. It will specifically vote alongside the common stock, no par value, solely on the Reverse Stock Split at a scheduled shareholder meeting planned for the calendar year 2025. The Series Z Preferred Stock does not encompass voting rights on other matters, except if mandated under the Wyoming Business Corporations Act.

Furthermore, the shareholder holding the Series Z Preferred Stock will have the ability to vote on the Reverse Stock Split in alignment with the shares of the common stock. The Series Z Preferred Stock can be entirely canceled at any time based on the Board of Directors’ discretion or automatically upon the approval of the Reverse Stock Split by the Company’s shareholders at a meeting.

The primary purpose behind introducing the Series Z Preferred Stock is to enhance the chances of garnering the necessary votes for the Reverse Stock Split Proposal. This strategic move aims to effectively mirror the votes of common stockholders at the upcoming Special Shareholders’ Meeting, as indicated in the Preliminary Proxy Statement issued by the company.

BioNexus Gene Lab Corp. believes that the introduction of the Series Z Preferred Stock complies with Nasdaq Rule 5640, under the review conducted against Nasdaq Staff Interpretation Letter, identification number 1841.

The creation of the Series Z Preferred Stock stands as a significant development for BioNexus Gene Lab Corp. and marks a strategic step towards implementing the Reverse Stock Split Proposal efficiently.

The Form 8-K also includes the filing of Articles of Amendment and a Cover Page Interactive Data File. Su-Leng Tan Lee, the Chief Executive Officer of BioNexus Gene Lab Corp., signed the document on behalf of the company on February 14, 2025.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read BioNexus Gene Lab’s 8K filing here.

BioNexus Gene Lab Company Profile

BioNexus Gene Lab Corp., through its subsidiary, sells chemical raw material products in Malaysia, Indonesia, Vietnam, and other countries in Southeast Asia. The company offers chemical raw material products, which include Polyester Resin SHCP 268, a thixotropic, quick-curing unsaturated polyester resin suitable as a general-purpose resin; Polyester Resin 9509, a general-purpose material used in production of marine boats and water slides; and Polyester Resin 2802 used as a component in the pultrusion process by certain manufacturers.