WALTHAM, Mass. - Vicarious Surgical Inc. (NYSE: RBOT), a company specializing in advanced robotics technology for surgery, has declared a 1-for-30 reverse stock split of its Class A and Class B common stock. This move, approved by shareholders on Monday, is aimed at raising the company's share price to satisfy the New York Stock Exchange's minimum price requirements.
The reverse stock split is scheduled to take effect after the market closes on Wednesday, June 12, 2024, with trading to commence on a post-split basis the following day. The adjustment will reduce the number of Class A common shares from about 156.8 million to approximately 5.2 million and Class B common shares from around 19.6 million to about 654,000. The total authorized shares will remain unchanged, and the par value per share will stay at $0.0001.
Stockholders will not receive fractional shares but will be compensated in cash for any fractional entitlements. The company's publicly traded warrants, under the symbol "RBOT WS," will continue to be listed on the NYSE, and the terms of outstanding options, warrants, and similar securities will be amended accordingly. Post-split, warrants will be exercisable for around 921,620 shares of Class A common stock at an adjusted price of $345.00 per share.
The reverse stock split is designed to affect all shareholders equally and will not alter their percentage ownership in Vicarious Surgical, except for minimal changes due to the treatment of fractional shares.
Vicarious Surgical, founded in 2014 and headquartered in Waltham, Massachusetts, is recognized for its innovative approach to surgical robotics, which aims to enhance surgical efficiency, patient outcomes, and reduce healthcare costs. The company's technology is backed by prominent investors such as Bill Gates and Vinod Khosla's Khosla Ventures.
The information in this article is based on a press release statement from Vicarious Surgical Inc.
In other recent news, Vicarious Surgical disclosed its first-quarter financial results for 2024, emphasizing the ongoing development of its V1.0 surgical system. The company reported a 28% reduction in operating expenses, which totaled $16.1 million, and an adjusted net loss of $15.1 million for the quarter. Research and Development (R&D) expenses amounted to $10 million, with general and administrative expenses at $5 million. Vicarious Surgical also reported a robust cash reserve of $84 million, preparing for clinical trials and FDA submissions.
The company also highlighted a successful cadaver lab conducted in March, which identified areas for system refinement. The V1.0 system is expected to be completed by fall 2024, with an anticipated clinical trial scheduled for 2025. Despite facing software bugs and arm sensing issues during testing, the company remains confident in its teams and disciplined execution. These are the latest developments in Vicarious Surgical's pursuit of innovation in the surgical robotics market.
InvestingPro Insights
In the wake of Vicarious Surgical Inc.'s announcement of a reverse stock split, investors are closely monitoring the company's financial health and market performance. According to real-time data from InvestingPro, Vicarious Surgical currently holds a market capitalization of $52.41 million. Despite the challenges faced by the company, two noteworthy InvestingPro Tips highlight that Vicarious Surgical holds more cash than debt on its balance sheet and has had two analysts revise their earnings upwards for the upcoming period, suggesting a potential positive outlook.
Still, the company's financial metrics reveal some concerns. The adjusted P/E ratio for the last twelve months as of Q1 2024 stands at -0.87, indicating that the company is not currently generating positive earnings per share. Moreover, Vicarious Surgical has experienced a significant price decline over the last year, with a -84.49% one-year price total return. This performance is consistent with the analysis that the company's valuation implies a poor free cash flow yield, as per InvestingPro Tips.
For investors seeking in-depth analysis and more tips on Vicarious Surgical, there are additional InvestingPro Tips available. These include insights on the company's cash burn rate, gross profit margins, and profitability projections for the year. For those interested in leveraging these insights, InvestingPro offers a comprehensive suite of tools and data. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, and discover the full range of InvestingPro Tips at https://www.investing.com/pro/RBOT.
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