Bionano Genomics (BNGO) stock plummeted by 5.24% in intraday trading on Thursday, following the company's announcement of an open letter to stockholders in support of its proposals at the upcoming special meeting, particularly the proposal for a reverse stock split.

In the letter, the company highlighted the importance of the reverse stock split to maintain its listing on the Nasdaq Capital Market, as its stock price has been trading below the required minimum bid price of $1.00 per share since May 2024. The reverse stock split is expected to improve the marketability and liquidity of the company's stock, enabling it to attract and retain talent, and provide flexibility in structuring its finances and related transactions.

While Bionano Genomics has made progress in its business, including increasing its installed base and product sales, the company stated that it still requires ongoing investment. By effecting a reverse stock split, the company believes it can enhance its ability to raise additional capital necessary for continued operations and to drive further progress.