MOUNTAIN VIEW, Calif. - Aditxt, Inc. (NASDAQ: ADTX), a health innovation platform, has announced a 1-for-40 reverse stock split of its common stock, to take effect at the start of trading on October 2, 2024. This move aims to align the company with Nasdaq's minimum bid price requirement.
The reverse split was approved by shareholders on August 7, 2024, and the board of directors determined the final ratio. Following the reverse split, the CUSIP number for Aditxt's common stock will change to 007025703. For every 40 existing shares, shareholders will receive one new share of common stock. Fractional shares will be rounded up to the nearest whole share. Post-split, Aditxt is expected to have approximately 244,667 shares of common stock issued and outstanding.
Further details about the reverse stock split are available in the definitive proxy statement filed with the Securities and Exchange Commission on July 5, 2024.
Aditxt's mission, through its innovation platform, is to expedite the development of health innovations. The company is currently involved in immune and precision health programs and has plans to introduce new programs focused on public health and women's health. These future programs are contingent upon the completion of transactions with Appili Therapeutics, Inc. (TSX: APLI; OTCPink: APLIF) and Evofem Biosciences, Inc. (OTCQB: OTC:EVFM), subject to certain conditions including shareholder approvals and sufficient capital raising by Aditxt.
The information in this article is based on a press release statement from Aditxt, Inc.
InvestingPro Insights
As Aditxt, Inc. (NASDAQ: ADTX) prepares for its reverse stock split, it's worth examining the financial health of one of its potential acquisition targets, Appili Therapeutics, Inc. (TSX: APLI; OTCPink: APLIF). InvestingPro data reveals some challenging metrics for Appili that could impact the success of Aditxt's planned expansion.
Appili Therapeutics currently operates with a market capitalization of just $2.7 million, indicating a very small-cap company. The company's revenue for the last twelve months stands at a modest $0.6 million, though it has shown impressive revenue growth of 147.6% over the same period. However, this growth comes with significant challenges.
InvestingPro Tips highlight that Appili is quickly burning through cash and operates with a significant debt burden. These factors could potentially complicate Aditxt's acquisition plans and future integration efforts. Additionally, Appili is not profitable over the last twelve months, and analysts do not anticipate the company will be profitable this year, which aligns with the negative earnings per share of -$0.02 reported in the InvestingPro data.
The stock's volatility is another factor to consider. While Appili has seen a significant return of 20% over the last week, its year-to-date and one-year price returns are negative at -14.29% and -45.45% respectively. This volatility, combined with the company's financial challenges, could introduce additional risks to Aditxt's expansion strategy.
For investors seeking a more comprehensive analysis, InvestingPro offers 9 additional tips for Appili Therapeutics, providing a deeper understanding of the company's financial position and market performance.
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