Bright Health finalizes reverse stock split

Bright Health Group completed a reverse stock split on Monday, raising its share price above the minimum required to remain listed on the New York Stock Exchange.

InsureTech, which is on the verge of bankruptcy, consolidated its shares from one to 80, raising the market price to $13.57. the board of directors intends Reevaluate Executive Compensation After reverse stock split. Shares were trading at 21 cents before the consolidation.

Bright Health stock is still much lower than it is to start 2021.

“Most interestingly, even with this one-for-80 reverse split, the stock would still be trading below its $17.25 IPO price less than two years ago, indicating just how much shareholders have lost, Ari Gottlieb, principal A2 Strategy Corp., wrote in a text message. He wrote that Bright Health would need to pursue a split of one to 100 to match the initial public offering price.

Bright Health did not immediately respond to a request for an interview.

At the time of its IPO, Bright Health reached a valuation of $12 billion. Now, it’s all set exit health insurance markets Which was considered its main business. Bright Health previously sold exchange, employer and Medicare Advantage policies in the first 15 states. the company is shutting down all those lines and looking for a buyer for its Medicare Advantage plans in California, which is its last active insurance product.

Bright Health also operates a network of 74 primary care clinics in Florida and Texas that serve 375,000 patients. Lenders can cancel their credit agreements if insurance regulators in any state place the company under receivership. Bright Health reported a combined $163 million reduction in its Florida and Texas insurance subsidiaries at the end of last year.

Florida insurance regulators extended this month their supervision The company’s through June, Bright Health executives are required to obtain regulatory approval to spend the money.

Chief Financial and Administrative Officer Cathy Smith resigned from the company earlier this month. The company said in a Securities and Exchange Commission filing that Smith did not resign because of a conflict with the board of directors, the management team or the company’s financial reporting issues. She will remain an advisor to the company and will be paid $50,000 per month. Jay Matushak, former Senior Vice President of Insurance, is the new CFO.

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