On November 10, 2022 Aileron Therapeutics (Nasdaq: ALRN), a chemoprotection oncology company that aspires to make chemotherapy safer and thereby more effective to save more patients’ lives, reported that it will effect a 1-for-20 reverse stock split of its common stock. The reverse stock split will become effective at 5:00 p.m. ET today (Press release, Aileron Therapeutics, NOV 10, 2022, View Source [SID1234623663]). Aileron’s common stock will continue to be traded on the Nasdaq Capital Market under the symbol "ALRN" and will begin trading on a split-adjusted basis when the market opens on November 11, 2022.

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The reverse stock split, which was approved by Aileron’s stockholders on June 15, 2022, is intended to bring the company into compliance with Nasdaq’s minimum bid price requirement. The new CUSIP number for the company’s common stock following the reverse stock split will be 00887A 204.

At the effective time of the reverse stock split, every 20 shares of Aileron’s issued and outstanding common stock will be converted automatically into 1 issued and outstanding share of common stock without any change in the par value per share. This will reduce the company’s number of shares of common stock outstanding from approximately 90.8 million shares to approximately 4.5 million shares.

No fractional shares of common stock will be issued as a result of the reverse stock split. Stockholders who would otherwise be entitled to receive a fractional share will receive a cash payment in lieu thereof. The reverse stock split will affect all stockholders uniformly and will not alter any stockholder’s percentage interest in Aileron’s equity, except to the extent that the reverse stock split would result in a stockholder owning a fractional share. Proportional adjustments will be made to the number of shares of Aileron’s common stock issuable upon exercise of Aileron’s stock options and warrants, as well as the applicable exercise price.

Stockholders owning shares via a broker, bank, trust, or other nominee will have their positions automatically adjusted to reflect the reverse stock split, subject to such broker’s particular processes, and will not be required to take any action in connection with the reverse stock split. Stockholders who hold shares in brokerage accounts should direct any questions concerning the reverse stock split to their broker; all other stockholders may direct questions to the company’s transfer agent, Computershare Trust Company, Inc., who is acting as exchange agent for the reverse stock split, at US: +1 800 962 4284 or International: +1 781 575 3120.