Bright health he finalized a 1-for-80 reverse stock split to raise his stock price above the threshold needed to remain listed on the New York Stock Exchange.
The reverse split boosted the company’s performance The stock traded up $13.57 at the NYSE on Monday, down from $0.21 at the close on Friday.
The company threatens to delist on the New York Stock Exchange if its shares do not reach $1 and maintain that value for 30 consecutive days.
The company announced a filing with the Securities and Exchange Commission that it is seeking shareholder approval for the split in March.
Bright Health did not immediately respond to a request for comment.
THE BIGGER TREND
Bright health It hit the public markets in June 2021, about a year after raising a $500 million Series E round. In December 2022, the company received a major investment of $750 million from Cigna Ventures, the venture capital arm of insurance company Cigna.
However, the company is having financial difficulties, and Last October, it announced that it would no longer offer individual and family health plans through its insurtech Bright HealthCare next year and was scaling back its Medicare Advantage products outside of California and Florida.
Cruel health care reported in March that the company’s management team had given itself a bonus of more than $4 million in 2022 after losing $1.6 billion, and Bright Health executives told investors that $300 million must be raised by the end of April to avoid bankruptcy for:
Earlier this month, the Minneapolis-based company announced that it is exploring the sale of its California Medicare Advantage insurance business. Bright Health Chief Financial Officer Kathy Smith also announced she is stepping down to pursue other opportunities.