BERWYN, Pa. - Virpax Pharmaceuticals, Inc. (NASDAQ: VRPX), a company focused on developing non-addictive therapies for pain and other central nervous system disorders, has announced a 1-for-10 reverse stock split of its common stock, which will take effect on March 1, 2024, at 12:01 a.m. Eastern Time. The stock will continue to be listed on the Nasdaq Capital Market under the ticker VRPX and will begin trading on a split-adjusted basis upon market opening on March 1.
This move comes after a special meeting of stockholders on December 28, 2023, where the company's Board of Directors was given the discretion to implement a reverse stock split. The Board has since determined the final ratio to be 1-for-10. The reverse split aims to reduce the number of outstanding shares of Virpax's common stock from approximately 11.7 million to about 1.2 million, while the proportional ownership of each shareholder will remain unchanged, except for adjustments due to fractional shares.
Gerald Bruce, CEO of Virpax Pharmaceuticals, commented on the company's progress in product development and the challenging capital market environment faced by many micro-cap and biotech companies. He expressed that the reverse split is expected to help the company meet Nasdaq's minimum bid price requirement and make the stock price more appealing to a wider range of investors. Bruce remains optimistic about the company's future prospects.
The reverse split is not set to alter the total number of authorized shares of common stock, as outlined in the company's Amended and Restated Certificate of Incorporation.
Virpax's transfer agent, VStock Transfer, LLC, will act as the paying agent for the reverse split and will provide stockholders with instructions on exchanging stock certificates. Those entitled to fractional shares as a result of the split will receive a cash payment based on the average closing sales price of the stock on the Nasdaq for the ten days preceding the effective date.
This strategic step is intended to ensure compliance with the Nasdaq Capital Market's minimum bid price requirement of $1.00 per share and to potentially broaden the company's investor base.
The information in this article is based on a press release statement from Virpax Pharmaceuticals.
InvestingPro Insights
As Virpax Pharmaceuticals (NASDAQ: VRPX) undergoes a reverse stock split to consolidate its shares and potentially attract a broader investor base, current and prospective investors might consider several key metrics and insights from InvestingPro. The company holds a market capitalization of $3.98 million, reflecting its status as a micro-cap stock in the biotech sector. Despite the challenging market conditions, Virpax has seen a significant return over the last week, with a 25.89% increase in its price total return.
InvestingPro Tips highlight that Virpax holds more cash than debt on its balance sheet, which could provide some stability and flexibility in its operations. However, the company has been grappling with weak gross profit margins and is not expected to be profitable this year, as analysts are not anticipating a turn to profitability in the near term. Additionally, Virpax does not pay a dividend to shareholders, which is common among growth-focused biotech companies that reinvest earnings into research and development.
The price of VRPX was previously closed at $0.34, indicating that the stock is trading at just 28.87% of its 52-week high, which could suggest a potential upside if the company's strategic initiatives bear fruit. Investors interested in a deeper dive into Virpax Pharmaceuticals can find more InvestingPro Tips that could further inform their investment decisions. There are currently 6 additional tips available on InvestingPro for Virpax, which can be accessed by visiting https://www.investing.com/pro/VRPX. To get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, use coupon code PRONEWS24.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.