ANN ARBOR, Mich. - ENDRA Life Sciences Inc. (NASDAQ: NASDAQ:NDRA), specializing in Thermo Acoustic Enhanced Ultrasound (TAEUS®), will execute a 1-for-50 reverse stock split, effective on Tuesday, August 20, 2024. The measure aims to elevate the company's common stock bid price to meet the Nasdaq Capital Market's minimum bid price requirement for continued listing. The stock will trade under the same ticker NDRA, with a new CUSIP number 29273B 401.
The reverse stock split, authorized by stockholders on August 6, 2024, will convert every 50 shares of existing common stock into one new share. Consequently, the total shares will reduce from approximately 72.4 million to about 1.4 million, and authorized shares will decrease from 1 billion to 20 million. Fractional shares will be rounded up to the next whole share for shareholders.
Adjustments will be made to the exercise prices and number of shares in the company’s equity plans. The reverse stock split, which will not alter the common stock's par value, will be processed automatically without requiring any action from stockholders. VStock Transfer, LLC, will issue transaction notices to stockholders holding shares electronically in book-entry form. Those holding shares through brokers or banks are not expected to take any action as adjustments will be made by the respective institutions.
Further details about the reverse stock split can be found in the definitive proxy statement filed with the U.S. Securities and Exchange Commission on June 25, 2024, available at www.sec.gov and the company's website.
ENDRA Life Sciences is recognized for its innovative TAEUS® technology, which offers tissue characterization akin to MRI at a fraction of the cost and is intended for use with existing ultrasound systems worldwide. Initially focusing on the assessment of fatty liver tissue, the technology has potential applications in other clinical areas, including non-invasive visualization of tissue temperature during surgical procedures.
This news is based on a press release statement from ENDRA Life Sciences Inc.
In other recent news, ENDRA Life Sciences Inc. has experienced a series of significant changes and developments. The company recently appointed Alexander Tokman as the acting CEO, Ziad Rouag as Head of Regulatory and Clinical Affairs, and Richard Jacroux as Chief Financial Officer. These leadership transitions come as ENDRA is set to enhance its patented TAEUS® technology's capabilities.
The company's Q1 2024 financial results showed a decrease in operating expenses and a net loss of $2.8 million. To support its working capital and general corporate purposes, ENDRA announced an $8 million public offering, which includes common stock and pre-funded warrants.
In governance matters, ENDRA's stockholders approved a substantial increase in authorized shares of common stock, from 80 million to 1 billion. The company faced a delisting threat from Nasdaq due to non-compliance with the exchange's minimum bid price requirement, which it appealed against.
ENDRA also reported considerable progress with its TAEUS technology, concluding a pre-submission meeting with the U.S. Food and Drug Administration (FDA) regarding the clinical trial design for its TAEUS liver device. These recent developments highlight ENDRA's commitment to advancing its regulatory processes and commercial activities.
InvestingPro Insights
As ENDRA Life Sciences Inc. (NASDAQ: NDRA) prepares for a reverse stock split to maintain its listing on the Nasdaq Capital Market, the company's financial health and stock performance metrics provide a broader context for investors. According to InvestingPro data, ENDRA has a market capitalization of just $3.65 million, reflecting the company's small size in the biotechnology market. With a negative price-to-earnings (P/E) ratio of -0.08 and an adjusted P/E ratio for the last twelve months as of Q2 2024 at -0.38, the financials indicate that the company is not currently generating profits, a common situation for many early-stage biotech firms.
The latest InvestingPro Tips highlight that ENDRA Life Sciences holds more cash than debt on its balance sheet, which is a positive sign for liquidity and financial flexibility. However, the company is also rapidly depleting its cash reserves, which could raise concerns about its ability to fund ongoing operations and research without seeking additional capital. The stock's price volatility has been high, and analysts do not expect the company to be profitable this year. Over the past year, the stock price has significantly decreased by over 95%.
Investors interested in the detailed analysis and additional insights can find more InvestingPro Tips for ENDRA Life Sciences, with a total of 16 tips available on the platform, which could be instrumental in making informed decisions. For those looking to understand the company's current valuation and future prospects, the InvestingPro Fair Value is estimated at $0.07, providing a data point for comparison against current and potential future stock prices.
As ENDRA continues to navigate the challenges of the biotech industry, these financial metrics and expert tips from InvestingPro may serve as valuable tools for investors looking to assess the company's strategic moves, like the upcoming reverse stock split.
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