Why Did INBS Stock Fall 17% Today?

• The stock will begin trading on a split-adjusted basis on December 16 under the same ticker.
• Intelligent Bio Solutions will have roughly 959,533 outstanding shares after the split takes effect.
• The proposed range set the share exchange ratio between a minimum of 1-for-2 and a maximum of 1-for-10.

Shares of Intelligent Bio Solutions Inc. (INBS) tumbled 17% on Friday after the company announced a 1-for-10 reverse stock split. 

INBS stock will begin trading on a split-adjusted basis on December 16 under the same ticker. The reverse split, which was approved by shareholders at the company's October 16 annual meeting, was finalized by the board within the authorized ratio range. The proposed range set the share exchange ratio between 1-for-2 and 1-for-10.

Following the reverse split, every 10 shares of outstanding common stock will be consolidated into one share, with proportional adjustments to equity awards, warrants, and other rights.

Shareholders entitled to fractions will receive cash, as no fractional shares will be issued. The par value will remain $0.01 per share, and the company's authorized share count stays at 100 million. After the split takes effect, Intelligent Bio Solutions will have roughly 959,533 outstanding shares.

Companies often use reverse stock splits to boost their share price back above the $1 minimum required by major exchanges, allowing them to regain compliance after a deficiency notice and prevent delisting.

Net Loss Widens In Q1

First-quarter revenue rose to $1.11 million, up 32% sequentially and 28% year-on-year, fueled by strong cartridge sales and new customer growth. However, higher operating expenses widened the company's net loss to $2.9 million.

Before its earnings, the company secured a major contract for its fingerprint-based drug-testing technology with one of the U.K.'s largest industrial service providers. The unnamed client operates across energy, defense, nuclear, and industrial sectors, employing more than 30,000 people worldwide.

The Intelligent Fingerprinting Drug Screening System is designed to cut downtime, boost productivity, and deliver on-site results in under ten minutes, the company had said.

How Did Stocktwits Users React?

Retail sentiment on Stocktwits turned 'bearish' from 'neutral' a day earlier.

The stock has declined 57% so far this year.

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