BOSTON - Allarity Therapeutics, Inc. (NASDAQ: ALLR), a clinical-stage pharmaceutical company specializing in personalized cancer treatments, declared the implementation of a 1-for-20 reverse stock split. The action is set to take effect at the opening of the market on April 9, 2024, following approval from stockholders at the Special Meeting held on April 1, 2024.
The reverse stock split is intended to help Allarity Therapeutics meet the Nasdaq's minimum bid price requirement. Post-split, the company's common stock will trade on a split-adjusted basis, and the total number of outstanding shares will reduce to approximately 1/20th of the pre-split amount. The new CUSIP number for the post-split common stock will be 016744401.
No fractional shares will be issued; instead, stockholders will receive a rounding up of any fractional share to the nearest whole share. Adjustments will be made to the number of shares underlying outstanding equity awards, shares issuable under the 2021 equity incentive plan, and the conversion or exercise prices of such awards and plans.
Stockholders do not need to take action if their shares are held in book-entry form or through a brokerage account. Those with physical share certificates will receive instructions from Computershare Limited, the appointed exchange agent, on how to exchange their certificates.
Allarity Therapeutics leverages its proprietary Drug Response Predictor (DRP®) Companion Diagnostic to select patients likely to benefit from specific cancer treatments. The DRP® platform, which has been validated in 37 out of 47 clinical studies, is based on mRNA expression profiles from patient biopsies and is patented for over 70 anti-cancer drugs.
The company is currently focusing on the development of stenoparib, a novel PARP/Tankyrase inhibitor, for advanced ovarian cancer patients, utilizing the DRP® for patient selection in an ongoing phase 2 clinical trial (NCT03878849).
This announcement is based on a press release statement from Allarity Therapeutics.
InvestingPro Insights
Allarity Therapeutics, Inc. (NASDAQ: ALLR) is navigating a challenging period, with real-time data from InvestingPro painting a picture of a company facing significant financial and market performance hurdles. As the company embarks on a reverse stock split to meet Nasdaq's minimum bid price requirement, investors are closely monitoring its financial health and stock performance.
InvestingPro data highlights a market capitalization of 1.44 million USD, reflecting the company's current valuation in the market. Additionally, the stock's price has experienced a steep decline, with a 1-week price total return of -22.45% and a staggering 1-year price total return of -99.67%. This trend is further evidenced by the stock trading at just 0.15% of its 52-week high, emphasizing the significant drop in investor confidence and market value.
Two key InvestingPro Tips shed light on the underlying issues that may be contributing to Allarity's challenges. Firstly, the company's RSI suggests the stock is in oversold territory, which could indicate a potential rebound if market sentiment shifts. Secondly, Allarity is quickly burning through cash, a situation that often raises concerns about a company's long-term financial sustainability and its ability to fund ongoing operations and research endeavors.
Investors seeking a deeper understanding of Allarity Therapeutics' financial situation and market performance can find additional insights on InvestingPro. There are 14 more InvestingPro Tips available, covering aspects such as gross profit margins, short-term obligations, and analyst expectations. For those interested in leveraging these insights, InvestingPro offers a comprehensive suite of tools and analytics. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
As Allarity Therapeutics continues to develop its DRP® Companion Diagnostic and advance clinical trials, the InvestingPro platform remains a valuable resource for investors to stay informed and make data-driven decisions.
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