Bright Health Group is asking its shareholders to approve a reverse stock split in an effort to boost its flagging share price and remain in compliance with stock exchange listing standards.
The New York Stock Exchange notified Bright Health in December that it was at risk for being delisted after its average closing price for a 30-day trading period was less than $1 per share.
The company outlined the proposal in a Monday financial filing. Shareholders are being asked to approve a reverse stock split that could range from 1-for-15 up to 1-for-80. If approved, the ultimate ratio for the reverse stock split would be determined by Bright Health's board of directors.
At the upper end of the reverse stock split range, 80 shares of Bright Health stock would be reduced to a single share. The company will not issue fractional shares. Shareholders entitled to fractional shares would instead receive cash payments.
"We also believe that the reverse stock split will make our common stock more attractive to a broader range of institutional and other investors," Bright Health said in the filing.
Bloomington-based Bright Health's annual meeting is set for May 4. If the measure is approved, the reverse stock split could be effective the next day.
Under a 1-for-80 reverse stock split the number of outstanding Bright Health shares would shrink from 635.1 million to 7.9 million.
In October, Bright Health announced it would no longer be selling individual and family heath insurance, which had been the company's original focus.
In the wake of that decision the company announced 99 layoffs at its Bloomington headquarters in November followed by plans to cut another 68 jobs in February.
Bright Health went public at $18 per share in June 2021. On Monday its stock closed at 22 cents per share, down nearly 99% from its IPO price.