Evelo Biosciences Announces Reverse Stock Split Effective

– EVLO common stock expected to begin trading on a split-adjusted basis on June 30, 2023 –

CAMBRIDGE, Mass., June 29, 2023 (GLOBE NEWSWIRE) -- Evelo Biosciences, Inc. (Nasdaq:EVLO), a clinical stage biotechnology company developing a novel platform of orally delivered inflammation-resolving medicines acting on the small intestinal axis (SINTAX), today announced that its Board of Directors has approved a 1-for-20 reverse stock split of the Company’s common stock. The reverse stock split will become effective at 5:00 p.m. Eastern Time today, June 29, 2023, after close of trading on The Nasdaq Global Select Market. The Company’s common stock is expected to commence trading on a split-adjusted basis when the markets open on June 30, 2023 under the existing trading symbol “EVLO.” The new CUSIP number for the Company’s common stock following the reverse stock split will be 299734 202.

The primary goal of the reverse stock split is to increase the per share market price of the Company’s common stock to meet the minimum per share bid price requirement for continued listing on The Nasdaq Global Select Market. The reverse stock split was approved by the Company’s stockholders at its annual meeting of stockholders held on June 8, 2023. On June 27, 2023, following the annual meeting, the Company’s Board of Directors approved the reverse stock split at the ratio of 1-for-20.

As a result of the reverse stock split, every 20 shares of the Company’s common stock issued and outstanding will be automatically reclassified into one new share of the Company’s common stock. Proportionate adjustments will be made to the exercise prices and the number of shares underlying the Company’s outstanding equity awards, as applicable, and warrants exercisable for shares of common stock, as well as to the number of shares issuable under the Company’s equity incentive plans and certain existing agreements. The common stock issued pursuant to the reverse stock split will remain fully paid and non-assessable. The reverse stock split will not affect the number of authorized shares of common stock or the par value of the common stock.

No fractional shares will be issued in connection with the reverse stock split. Stockholders who would otherwise be entitled to receive fractional shares as a result of the reverse stock split will be entitled to a cash payment in lieu thereof at a price equal to the fraction to which the stockholder would otherwise be entitled multiplied by the closing sales price per share of the common stock (as adjusted to give effect to the reverse stock split) on The Nasdaq Global Select Market today, the last trading day immediately preceding the effective time of the reverse stock split.