Rallybio Corporation has announced a significant corporate restructuring as it prepares for its merger with Avenzo Therapeutics, Inc. The company will effect a one-for-two reverse stock split of its common stock, which is scheduled to take effect on November 20, 2026. This decision follows stockholder approval at the Annual Meeting held on November 4, 2026, and is part of the transactions outlined in the Merger Agreement dated May 31, 2026.

The reverse stock split is designed to streamline the company's share structure ahead of the merger, which is expected to enhance Rallybio's competitive position in the pharmaceutical preparations sector. After the split, the number of outstanding shares will decrease from approximately 5.6 million to about 2.8 million, while the par value of the shares will remain unchanged at $0.0001 per share.

Rallybio, which trades under the ticker symbol RLYB on the Nasdaq, has been focusing on developing therapies for severe and rare diseases. The merger with Avenzo Therapeutics is anticipated to create a more robust entity within the industry, allowing for the advancement of innovative oncology therapies.

Background

Rallybio Corporation is a clinical-stage biotechnology company based in New Haven, Connecticut, primarily engaged in the development of therapies for severe and rare diseases. The company operates under the Standard Industrial Classification (SIC) code 2834, which pertains to Pharmaceutical Preparations. Rallybio's recent filings indicate a strong commitment to advancing its product pipeline, which addresses significant unmet medical needs.

What the Filing Says

According to the recent SEC filing (accession number 0001193125-26-455769), the reverse stock split will be executed at 12:01 a.m. Eastern Time on November 20, 2026. The filing states, "At the effective time of the reverse stock split, every two issued and outstanding shares of the Company’s common stock will automatically be combined into one share of common stock." This split aims to facilitate the merger with Avenzo and is expected to be a crucial step in the reorganization process.

Impact

The reverse stock split will affect all shareholders uniformly, ensuring that their percentage interest in the company's equity remains unchanged, except for those receiving cash in lieu of fractional shares. This move is anticipated to attract institutional investors and improve the stock's marketability, as a higher share price may align better with investor expectations and Nasdaq listing requirements.

What's Next

Following the reverse stock split, Rallybio plans to change its name to Avenzo Therapeutics, Inc., and will trade under the new ticker symbol "AVZO" on the Nasdaq Capital Market. The completion of the merger is contingent upon satisfying all applicable Nasdaq approvals and closing conditions as outlined in the Merger Agreement.