Aethlon Medical, Inc. Announces 1-for-5 Reverse Stock Split and Key Corporate Updates
San Diego, CA, July 31, 2026 — Aethlon Medical, Inc. (Nasdaq: AEMD), a Nevada corporation specializing in medical device technology, has announced a significant corporate action that will impact its shareholders and potentially its share value. The company has filed a Certificate of Change with the Secretary of State of Nevada, authorizing a 1-for-5 reverse stock split of its issued and outstanding common stock, effective July 31, 2026.
Key Points from the Report
- Reverse Stock Split Details: The reverse split will consolidate every five shares of Aethlon’s common stock into one new share. The par value remains at \$0.001 per share.
- Effective Date: The reverse split becomes effective at 10:00 a.m. Eastern Time on July 31, 2026. Trading on a split-adjusted basis is expected to begin on August 4, 2026, under the unchanged Nasdaq ticker symbol “AEMD”.
- New CUSIP Number: The CUSIP number for the split-adjusted common stock will be updated to 00808Y703.
- No Fractional Shares: Fractional shares will not be issued. Any shareholder who would otherwise receive a fractional share will receive one whole share instead. No cash or other consideration will be paid for fractional shares.
- Book Entry and Certificated Shares: Shareholders holding shares in electronic form or through brokerage firms do not need to take any action. Computershare Transfer, Inc. will serve as the transfer and exchange agent.
- Reduction in Authorized Shares: The total number of authorized common shares will decrease from 100,000,000 to 20,000,000 as a result of the reverse stock split.
- Outstanding Shares: As of July 23, 2026, there were 3,249,569 shares outstanding. Post-split, this will be reduced to approximately 649,914 shares (subject to rounding adjustments).
- No Stockholder Approval Required: Under Nevada law, the board of directors was able to approve the reverse split without a shareholder vote as it did not adversely affect any other class of stock and did not issue money or scrip for fractional shares.
- Preferred Stock: The number of authorized preferred shares will not change.
- Adjustment of Derivative Securities: All options, warrants, and convertible securities outstanding prior to the split will be proportionally adjusted to reflect the reverse stock split.
- Reason for the Reverse Stock Split: The company is implementing the split as part of a broader capital markets and operating plan, specifically to manage dilution and maintain compliance with Nasdaq Listing Rule 5550(a)(2), which requires a minimum bid price for continued listing on the exchange.
- Filing and Exhibit: The Certificate of Change has been filed and is available as Exhibit 3.1 to the Form 8-K.
Shareholder Implications & Potential Price Sensitivity
- Potential Impact on Share Price: Reverse stock splits are typically enacted to increase the per-share market price, often to avoid delisting or to appeal to a wider range of investors. While the market capitalization stays unchanged, the number of shares outstanding is reduced, which may improve perception and trading dynamics.
- Nasdaq Listing Compliance: The reverse split is a direct response to Nasdaq’s minimum bid price requirement. This is a critical development for shareholders, as non-compliance could lead to delisting, significantly affecting liquidity and share value.
- Ownership Percentage Unchanged: The percentage ownership and voting power of each shareholder will remain almost unchanged, except for minor changes due to rounding of fractional shares.
- Administrative Convenience: No action is required from shareholders holding shares in electronic or book-entry form. Those with certificated shares will be handled by Computershare Transfer, Inc.
- Derivative Securities: Adjustments to options, warrants, and convertible securities ensure that their value and conversion ratios are not affected by the split, helping to prevent dilution or other unintended consequences for holders of these instruments.
Other Corporate Governance Updates
- Articles of Incorporation and Bylaws: The reverse split was executed via a Certificate of Change filed in Nevada, as provided under state law, and did not require amendments approved by shareholders.
- Financial Statement and Exhibit: The Certificate of Change is attached to the Form 8-K as Exhibit 3.1.
Conclusion for Investors
The 1-for-5 reverse stock split is a material and potentially price-moving event for Aethlon Medical, Inc. shareholders. It directly addresses Nasdaq listing requirements and reflects management’s focus on capital market stability and dilution control. Investors should monitor the trading post-split for impacts on liquidity, price movement, and market perception. The reduction in authorized shares also signals a more focused capital structure going forward.
The company’s actions demonstrate proactive governance and a commitment to maintaining its Nasdaq listing, which is crucial for institutional interest and shareholder value.
Disclaimer: This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell securities. Investors are encouraged to conduct their own research or consult with a financial advisor before making investment decisions. The author of this article is not responsible for any investment actions taken based on the information provided herein.
