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Avenue Therapeutics expands incentive plan, shareholders approve

EditorLina Guerrero
Published 06/26/2024, 05:00 PM
ATXI
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In a recent development, Avenue Therapeutics, Inc. (NASDAQ:ATXI), a specialty pharmaceutical company, announced the approval of a significant amendment to its 2015 Incentive Plan following a vote by its shareholders. The announcement was made in accordance with a Form 8-K filing with the Securities and Exchange Commission dated June 26, 2024.

The amendment, which received approval at Avenue's annual shareholder meeting on Monday, expands the number of authorized shares available under the plan by 5 million. This change effectively extends the life of the plan to June 24, 2034, and increases the share limit for non-employee director awards to 500,000 annually.

Avenue's Board of Directors had previously endorsed the amendment, pending shareholder approval, which was secured during the June 24 meeting. The enhanced plan aims to offer additional incentives to attract and retain key personnel within the company.

The meeting also resulted in the re-election of six directors who will serve until the 2025 annual meeting and the ratification of KPMG LLP as Avenue's independent registered public accounting firm for the fiscal year ending December 31, 2024.

The company's proxy statement, filed on May 6, 2024, outlines the material terms of the 2015 Plan and the amendment in detail. Avenue, based in Bay Harbor Islands, Florida, operates under the pharmaceutical preparations industry classification.

As of the April 30, 2024 record date, Avenue reported that 595,524 shares of its common stock were eligible to vote, alongside 250,000 shares of Class A Preferred Stock, each with a specified voting power according to the company's amended certificate of incorporation.

In other recent news, Avenue Therapeutics has seen significant developments. The pharmaceutical company completed patient enrollment for its Phase 1b/2a study of AJ201, a treatment for Spinal Bulbar Muscular Atrophy (SBMA), with results expected by mid-2024. Maxim Group adjusted its stance on Avenue Therapeutics shares, reducing the price target to $12 from the previous $56.25, while still endorsing the stock with a Buy rating. This adjustment reflects considerations of upcoming clinical data and potential capital requirements.

Recently, Avenue Therapeutics secured approximately $4.4 million through the immediate exercise of certain outstanding warrants. The company is also preparing updates on BAER-101, which is ready for a Phase 2a trial targeting rare epilepsies, and IV Tramadol, which has a final agreement in place with the FDA for an additional Phase 3 trial after previous successful Phase 3 studies.

In a strategic move, Avenue Therapeutics announced a 1-for-75 reverse stock split, aimed at meeting Nasdaq's minimum bid price requirement for continued listing. The company has received approval from the Nasdaq Hearings Panel for an extension to meet continued listing requirements on The Nasdaq Capital Market. These are the recent developments that reflect the company's strategic financial decisions and ongoing efforts.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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