Sarah Romano, the Chief Financial Officer of Entero Therapeutics, Inc. (NASDAQ:ENTO), recently reported a sale of company stock. The micro-cap company, currently valued at approximately $3 million, has seen its stock rise over 9% in the past week. According to a filing with the Securities and Exchange Commission, Romano sold 727 shares of common stock on January 6, 2025, at a price of $0.64 per share, totaling approximately $465. InvestingPro analysis suggests the stock may be undervalued at current levels.
The transaction was part of a "sell to cover" arrangement to address tax withholding obligations related to the vesting of Restricted Stock Units (RSUs). This type of sale is mandated by the company's policy and does not reflect a discretionary decision by Romano. Following this transaction, Romano retains ownership of 17,287 shares, including unvested RSUs. The company maintains strong liquidity with a current ratio of 5.34, indicating solid financial flexibility. Discover more insights and 10 additional ProTips for ENTO on InvestingPro.
In other recent news, Entero Therapeutics is grappling with accelerated financial obligations after receiving a Notice of Default and Demand for Payment. The notice, related to a Credit Agreement with Mattress Liquidators, Inc., cites failure to provide accurate financial statements and cessation of operations as the causes. Entero Therapeutics contests these claims and is actively exploring strategic alternatives, including raising capital, restructuring debt, or pursuing a potential merger, sale, or dissolution.
Simultaneously, Entero Therapeutics has proposed a merger with Journey Therapeutics, with the aim to establish an oncology-focused entity. The merger depends on several conditions, including Entero receiving at least $5 million in equity financing, SEC registration statement effectiveness, and Entero stockholder approval. The combined entity plans to focus on Journey's proprietary nano-immunoconjugates platform for cancer treatment.
Additionally, Entero Therapeutics has secured an exclusive global license to use Data Vault's QOLPOM® and FotoDigm® software in its clinical trials, starting with a Phase 3 study for latiglutenase, a treatment for celiac disease. The company has also secured approximately $1.1 million in a registered direct offering and concurrent private placement, managed by Roth Capital Partners (WA:CPAP).
In terms of analyst coverage, H.C. Wainwright has reinstated its coverage on Entero Therapeutics, shifting their rating from Under Review to Neutral, following the company's recent acquisition of ImmunogenX. Lastly, the company has appointed Machias Gini & O’Connell LLP (MGO) as its new independent registered public accounting firm, with Timothy R. Ramdeen joining the board of directors and Dr. Jack Syage transitioning to the role of Chief Scientific Officer.
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