Adial Pharmaceuticals Executes Reverse Stock Split To Meet Nasdaq Compliance Requirements

Adial Pharmaceuticals has taken action to address its listing status through a significant corporate restructuring. The company recently implemented a 1-for-25 reverse stock split of its common stock, effective February 5, 2026, with adjusted trading commencing the following day. This reverse stock split consolidates the company’s capital structure as it works toward regaining Nasdaq’s $1.00 minimum bid price requirement.

The market responded sharply to the announcement, with shares declining 20% in premarket trading—a typical reaction to reverse stock splits, which often signal financial challenges and can create uncertainty among existing shareholders. The consolidation reduces the outstanding share count from approximately 27.8 million shares to roughly 1.1 million shares, though individual shareholders’ ownership percentages remain proportionally the same, excluding the impact of any fractional shares.

Understanding the Compliance Timeline

Adial operates under a specific compliance deadline established by Nasdaq. The exchange initially granted the company 180 days from March 5, 2025, to restore its minimum bid price requirement. When that period expired on September 1, 2025, Nasdaq extended the timeline by another 180 days on September 3, 2025, providing a final compliance deadline of March 2, 2026. The reverse stock split represents management’s strategy to achieve this critical milestone.

Under the restructured capitalization, Adial Common Stock continues trading on Nasdaq under the ticker symbol “ADIL,” with a new CUSIP number of 00688A304. VStock Transfer, LLC, manages the reverse stock split as the company’s transfer agent and paying agent.

Strategic Rationale and Clinical Progress

Cary Claiborne, President and Chief Executive Officer, framed the restructuring as a crucial step to strengthen the company’s market position. “This reverse stock split represents an important step to strengthen our capital markets profile, restore compliance with Nasdaq’s minimum bid price requirement, and create a more efficient public float that supports broader institutional and long-term investor interest,” Claiborne stated.

Beyond the capital markets restructuring, Adial continues advancing its clinical pipeline. The company’s lead investigational asset, AD04, is a genetically targeted serotonin-3 receptor antagonist being developed for Alcohol Use Disorder (AUD) treatment in heavy drinking patients. Adial is planning a new Phase 3 clinical trial program for AUD in subjects with specific target genotypes identified through the company’s proprietary diagnostic genetic test—a focused approach that could differentiate the therapeutic strategy.

The next critical phase unfolds as the company navigates the path toward sustained Nasdaq compliance while simultaneously progressing its clinical development agenda. Investors will closely monitor whether the reverse stock split achieves its intended effect in meeting the exchange’s listing requirements by March 2026.