HANOVER, MD - Processa Pharmaceuticals, Inc. (NASDAQ:PCSA), a clinical-stage pharmaceutical company, has announced a reverse stock split with a ratio of 1-for-20, set to take effect at market open on Monday, January 22, 2024. This move aims to bring the company into compliance with the Nasdaq Capital Market's minimum bid price requirement.
The decision, made by the Board of Directors on January 8, 2024, follows the stockholder approval of the reverse stock split on November 14, 2023. As a result of the split, every twenty shares of issued and outstanding common stock will be converted into one share, with no change in par value per share. The company's common stock will continue to trade under the ticker symbol PCSA, but with a new CUSIP number 74275C304.
The reverse stock split is expected to reduce the number of outstanding common shares from approximately 24.6 million to about 1.2 million. Proportionate adjustments will be made to the shares underlying the company's outstanding equity awards, warrants, and the shares issuable under equity incentive plans, as well as the applicable exercise prices.
No fractional shares will be issued in connection with the reverse stock split. Stockholders who would receive fractional shares will instead receive a rounded up whole share number, eliminating the need for any cash payouts for fractional shares.
Registered stockholders with shares in book-entry form do not need to take any action to receive post-split shares. Those holding shares in certificate form will receive instructions from the exchange agent, Continental Stock Transfer & Trust. Stockholders with shares in a brokerage account will see their shares automatically adjusted to reflect the reverse stock split.
Processa Pharmaceuticals specializes in developing chemotherapeutic drugs designed to enhance safety and efficacy for cancer patients. The company's development strategy involves modifying existing FDA-approved oncology drugs, potentially leading to fewer side effects, increased cancer response, and broader patient benefits.
The information for this article is based on a press release statement. Additional details about the reverse stock split can be found in the company's definitive proxy statement filed with the SEC on October 5, 2023.
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