SeaStar Medical Holding Corporation (Nasdaq: ICU) will consolidate its outstanding shares by a 1‑for‑10 reverse stock split, effective 12:01 a.m. Eastern Time on January 5, 2026. The split will raise the per‑share price and bring the company back into compliance with Nasdaq’s $1.00 minimum bid price rule. The company’s CUSIP will change to 81256L302 following the split.
Under the new structure, each ten pre‑split shares will become one post‑split share. Fractional shares that would otherwise be issued are rounded up to the nearest whole share. The reduction in shares outstanding will proportionally increase the exercise price of any outstanding stock options and warrants, ensuring that option holders face a higher price to exercise their rights.
SeaStar has a history of reverse splits and Nasdaq compliance challenges. A 1‑for‑25 reverse split was executed on June 10, 2024, and the company received a Nasdaq notification in June 2023 regarding its minimum market value requirement. In June 2025, the company was notified of non‑compliance with the $2.5 million stockholders’ equity threshold, a status it later regained through a series of transactions. The current split is a routine compliance measure that follows this pattern of maintaining listing standards.
The company’s core business remains its Selective Cytopheretic Device (SCD) platform. Its pediatric product, QUELIMMUNE (SCD‑PED), received FDA Breakthrough Device designation and approval in 2024 for treating acute kidney injury in critically ill children. SeaStar is also conducting the NEUTRALIZE‑AKI pivotal trial for adult ICU patients. The company estimates a U.S. total addressable market of $25 to $33 billion across five clinical indications, underscoring the long‑term growth potential of its technology.
Investors reacted negatively to the announcement, reflecting concerns that a reverse split signals underlying financial distress. While the split will raise the share price and help maintain Nasdaq listing, it does not address the company’s recent challenges, such as a low share price and prior compliance notifications. The action is a compliance measure rather than a growth initiative, and investors should evaluate the company’s ongoing clinical progress and market opportunities to assess future prospects.
The reverse split will reduce the number of shares outstanding, increase the per‑share price, and adjust option exercise prices. These changes help SeaStar meet Nasdaq’s listing requirements and may improve liquidity for institutional investors. However, the split does not resolve the company’s underlying business challenges, and its long‑term success will depend on the commercialization of its SCD platform and the outcomes of its clinical trials. Investors should monitor the company’s progress in these areas to gauge the effectiveness of its compliance strategy and future growth trajectory.
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