WASHINGTON - 60 Degrees Pharmaceuticals, Inc. (NASDAQ: SXTP; SXTPW), a biopharmaceutical firm specializing in infectious disease treatments, declared a 1-for-12 reverse stock split of its common stock today. The action is aimed at complying with the Nasdaq's minimum bid price requirement.
The reverse stock split is scheduled to take effect on August 12, 2024, with the common stock trading on The Nasdaq Capital Market under the unchanged ticker "SXTP." The company's common stock CUSIP number will change to 83006G203 following the adjustment.
This strategic move follows the stockholders' approval on July 16, 2024, and the Board of Directors' decision on July 19, 2024, to enact a reverse stock split within the authorized range. The Certificate of Amendment to effectuate the reverse stock split was filed on July 30, 2024.
The consolidation will convert twelve current shares into one new share of common stock, proportionately adjusting outstanding equity awards, warrants, convertible notes, and shares under stock incentive plans. The par value and the authorized number of common stock and preferred stock will remain unchanged. No fractional shares will be issued; instead, fractions will be rounded up to the nearest whole share.
All shareholders will be affected uniformly by the reverse stock split, and it will not alter any shareholder's percentage interest in the company's equity. Equity Stock Transfer, LLC will act as the agent for the reverse stock split. Registered stockholders with pre-split shares in book-entry form need not take action, while those holding shares through brokers or nominees will see their positions automatically adjusted.
60 Degrees Pharmaceuticals, founded in 2010, received FDA approval for its malaria prevention drug ARAKODA® (tafenoquine) in 2018. The company collaborates with research entities in the U.S., Australia, and Singapore and has received support from the U.S. Department of Defense and private investors like Knight Therapeutics Inc.
The information in this article is based on a press release statement from 60 Degrees Pharmaceuticals. The company cautions that forward-looking statements in the press release are subject to risks and uncertainties and that actual results may differ materially from those projected.
In other recent news, 60 Degrees Pharmaceuticals has been making significant strides in the treatment of babesiosis, an infectious tick-borne disease. The biopharmaceutical company has initiated a clinical trial to evaluate the efficacy and safety of tafenoquine, a drug currently approved for malaria prophylaxis, in treating this disease. The trial, which is the first of its kind, is expected to provide interim results by September 2025.
The U.S. Food and Drug Administration (FDA) has also granted orphan drug designation to tafenoquine, offering market exclusivity, tax credits, and fee waivers to encourage the development of treatments for rare diseases. Ascendiant Capital maintains its Buy rating on 60 Degrees Pharmaceuticals, following a strong first-quarter performance that exceeded expectations with a gross profit of $81,000 and a net profit of $309,000.
In other company news, 60 Degrees Pharmaceuticals' shareholders have approved key proposals, including the election of five board members and amendments to the equity incentive plan and certificate of incorporation. These approvals aim to align the company's governance and compensation structures with market practices and shareholder interests. These are the latest developments in the company's ongoing efforts to develop new treatments for infectious diseases.
InvestingPro Insights
Amidst the strategic decision by 60 Degrees Pharmaceuticals to conduct a reverse stock split, investors and market watchers are closely observing the company's financial health and market performance. According to InvestingPro data, the company has experienced a significant price total return loss of 93.32% over the last year, reflecting the challenges it faces in the market.
InvestingPro Tips suggest that while 60 Degrees Pharmaceuticals holds more cash than debt on its balance sheet, analysts are not optimistic about its profitability in the near term. They do not anticipate the company will be profitable this year, which is corroborated by the company's weak gross profit margins and a substantial cash burn rate.
Key financial metrics from InvestingPro show a revenue growth of 2.63% over the last twelve months as of Q1 2024, which may offer a glimmer of hope. However, with an operating income margin of -1463.65% for the same period, the company's financial stability remains in question. The revenue growth is primarily attributed to a quarterly surge of 580.65% in Q1 2024, indicating potential volatility or one-time events influencing these figures.
For investors seeking a deeper analysis, there are 15 additional InvestingPro Tips available, which can provide a more comprehensive understanding of 60 Degrees Pharmaceuticals' market position and future prospects. Visit InvestingPro for these insights: https://www.investing.com/pro/SXTP.
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