Zomedica CEO Urges Shareholder Vote FOR Reverse Stock Split

TL;DR

**Zomedica's CEO is pushing for a reverse stock split to attract new investors and improve stock appeal.**

AI Summary

Zomedica Corp. (NYSE American:ZOM) CEO Larry Heaton issued an open letter to shareholders on January 31, 2024, strongly encouraging them to vote FOR an upcoming reverse stock split. Heaton emphasized that the reverse split would remove barriers for new individual and retail investors, urging shareholders to conduct their own due diligence. This matters to investors because a reverse split can impact share price, liquidity, and the company's ability to attract new capital and maintain its stock exchange listing.

Why It Matters

A reverse stock split can significantly alter a company's stock price and market perception, potentially affecting its ability to attract investors and maintain its listing on the NYSE American.

Risk Assessment

Risk Level: medium — Reverse stock splits carry inherent risks, including potential negative market perception and no guarantee of long-term share price appreciation.

Analyst Insight

Investors should research the potential impacts of a reverse stock split on Zomedica's stock, including its effect on share price, liquidity, and future investor interest, before making any investment decisions.

Key Players & Entities

• Zomedica Corp. (company) — the registrant and veterinary health company
• Larry Heaton (person) — Chief Executive Officer of Zomedica Corp.
• NYSE American (company) — stock exchange where Zomedica Corp. is listed
• January 31, 2024 (date) — date the open letter to shareholders was announced

FAQ

Key Financial Figures

• $1.00 — o not invest in stocks priced less than $1.00 per share. This includes larger funds,
• $5.00 — o not invest in stocks priced less than $5.00 per share. 4. Removal of economic dis
• $0.02 — t percentage of the share price. (e.g., $0.02 for $0.20 stock = 10%) We believe that
• $0.20 — ge of the share price. (e.g., $0.02 for $0.20 stock = 10%) We believe that these cost
• $46.40 — to buy the shares from the Company for $46.40 per share, instead of the $0.58 per sha
• $0.58 — ny for $46.40 per share, instead of the $0.58 per share pre-reverse split. 2 2.
• $100 million — s is not true. Not only do we have over $100 million dollars in liquidity at Zomedica, but w
• $0.2002 — referenced above, our closing price was $0.2002; the average closing price for the trai
• $0 — ce for the trailing 30 trading days was $0.1815, and we would have needed to close
• $100 — plits conducted by companies within the $100 - $200 million market cap range, (like
• $200 million — onducted by companies within the $100 - $200 million market cap range, (like us), the averag
• $75 million — t, with examples of companies with over $75 million on the balance sheet (like us) actually
• $2.5 million — at the Company would be valued at only ~$2.5 million. At this point our market capitalizati
• $1 billion — would be valuing the company at nearly $1 billion dollars; at $5.00 per share, their valu
• $5 billion — their valuation of the company would be $5 billion and so on. 4 Our products represent

Filing Documents

• zom_def14a.htm (DEFA14A) — 57KB
• zom_def14aimg1.jpg (GRAPHIC) — 4KB
• 0001654954-24-001092.txt ( ) — 63KB

Forward-Looking Statements

Forward-Looking Statements Except for statements of historical fact, this news release contains certain "forward-looking information" or "forward-looking statements" (collectively, "forward-looking information") within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur and include statements relating to our expectations regarding future results. Although we believe that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. We cannot guarantee future results, performance, or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking information. 8 Forward-looking information is based on the opinions and estimates of management at the date the statements are made, including assumptions with respect to economic growth, demand for the Company's products, the Company's ability to produce and sell its products, sufficiency of our budgeted capital and operating expenditures, the satisfaction by our strategic partners of their obligations under our commercial agreements, our ability to realize upon our business plans and cost control efforts and the impact of COVID-19 on our business, results and financial condition. Our forward-looking information is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking information. Some of the risks and other factors that could cause the results to differ materially from those expressed in the forward-looking information include, but are not limited to: the outcome of clinical stud

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