MIAMI - Avenue Therapeutics, Inc. (NASDAQ:ATXI), a specialty pharmaceutical company, announced today that it will execute a 1-for-75 reverse split of its common stock. The move is aimed at meeting Nasdaq's minimum bid price requirement for continued listing. This corporate action, approved by the Board of Directors and majority stockholders on March 6, 2024, is scheduled to take effect with the start of trading on April 26, 2024.
The reverse split will reduce the number of outstanding shares from approximately 44.7 million to about 0.6 million, with adjustments for fractional shares, which will be rounded up to the nearest whole share. Proportional changes will also apply to shares issuable upon exercise or conversion of the company's preferred stock, warrants, equity awards, and the number of shares reserved under its equity compensation plan.
Avenue's common stock will continue to trade on the Nasdaq Capital Market under the ticker symbol ATXI, with a new CUSIP number of 05360L403. VStock Transfer, LLC has been appointed as the exchange agent for the reverse split process.
The company has indicated that stockholders holding shares in book-entry form or through a bank, broker, or nominee are not expected to take any action. Those holding physical share certificates will receive instructions from VStock Transfer, LLC.
The definitive information statement concerning the reverse stock split was filed with the Securities and Exchange Commission on March 18, 2024. Avenue Therapeutics focuses on developing treatments for neurologic diseases, with several product candidates in various stages of development. The company, headquartered in Miami, FL, is an affiliate of Fortress Biotech, Inc. (NASDAQ:FBIO).
The information for this article is based on a press release statement from Avenue Therapeutics.
InvestingPro Insights
In light of Avenue Therapeutics, Inc.'s (NASDAQ:ATXI) recent announcement regarding a reverse stock split, investors may be seeking deeper financial insights into the company's performance. According to InvestingPro data, Avenue Therapeutics currently holds a market capitalization of $5.93 million USD, reflecting its size within the pharmaceutical sector.
The data also reveals a negative P/E ratio (last twelve months as of Q4 2023) of -0.57, indicating that the company is not currently profitable, a sentiment echoed by analysts who do not anticipate profitability this year.
Investors should note that the company's stock price has seen a significant decline over the past year, with a 1 Year Price Total Return of -86.25%. This is consistent with one of the InvestingPro Tips, which points out that Avenue's stock price often moves in the opposite direction of the market, a trend that may concern investors looking for market-correlated growth. Furthermore, the company's stock has taken a substantial hit over the last six months, with a 6 Month Price Total Return of -73.21%.
For those considering a deeper dive into Avenue Therapeutics' financial health, it is noteworthy that the company holds more cash than debt on its balance sheet. However, another InvestingPro Tip highlights weak gross profit margins, which could be a critical factor for investors to consider.
With these factors in mind, investors can access more comprehensive analysis and additional InvestingPro Tips for Avenue Therapeutics by visiting https://www.investing.com/pro/ATXI. Currently, there are 9 more InvestingPro Tips available, which can be further explored with a subscription. Use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, offering a more in-depth understanding of the company's financial nuances.
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