SALT LAKE CITY - Clene Inc. (NASDAQ:CLNN), a clinical-stage biopharmaceutical company, has announced it will execute a 1-for-20 reverse stock split effective at the start of trading on July 11, 2024. This move is aimed at regaining compliance with Nasdaq's minimum bid price requirement for continued listing on the Nasdaq Capital Market.
The reverse stock split was authorized by Clene's stockholders at the Annual Meeting on May 29, 2024, and later determined by the company's Board of Directors. It will be implemented by filing a Certificate of Amendment to the Certificate of Incorporation with the Secretary of State of the State of Delaware.
Following the reverse stock split, Clene's outstanding common stock will decrease from approximately 128.7 million shares to about 6.4 million shares. The company's stock will continue to trade under the ticker symbol CLNN but with a new CUSIP number 185634201. The number of authorized shares of common or preferred stock and their par values will not change.
All stockholders will be affected uniformly, and the reverse stock split will not alter any stockholder's percentage ownership of Clene's shares, except for adjustments due to the elimination of fractional shares. Stockholders owning fractional shares will receive cash payments based on the closing price of Clene's common stock on July 10, 2024.
Additionally, all stock options, warrants, rights to restricted stock awards, convertible debt, and contingent earn-out shares will be adjusted accordingly. The number of shares reserved for issuance under Clene's Amended 2020 Stock Plan will also be adjusted.
Equiniti Trust Company, LLC, is acting as the exchange agent and transfer agent for the reverse stock split and will provide instructions to stockholders regarding the exchange of their pre-split stock certificates for post-split shares in book-entry form.
Clene, which is based in Salt Lake City, Utah, with R&D and manufacturing operations in Maryland, focuses on developing treatments for neurodegenerative diseases such as ALS, Parkinson's disease, and multiple sclerosis through its subsidiary Clene Nanomedicine Inc.
The information in this article is based on a press release statement from Clene Inc.
In other recent news, Clene Inc. has been maintaining a steady presence in the market with H.C. Wainwright reiterating a Buy rating for the company. This follows the announcement of promising preclinical data for Clene's product, CNM-Au8, which is being explored as a potential treatment for Rett Syndrome.
The data, disclosed at the 2024 International Rett Syndrome Foundation (IRSF) Annual Meeting, demonstrated that CNM-Au8 could improve mitochondrial respiration and support neuroprotection in vitro.
In the preclinical stages, CNM-Au8 showed significant improvements in neuron health, neuron survival, and neurite lengths. These developments are particularly noteworthy considering Rett Syndrome currently has only one FDA-approved treatment.
The preclinical findings suggest that CNM-Au8 could potentially address critical pathological features of the Rett brain, including dysfunctional energy metabolism, glutamate excitotoxicity, demyelination, and mitochondrial dysfunction.
These results are part of Clene's ongoing efforts to explore new indications for CNM-Au8, which is already being investigated for other conditions. H.C. Wainwright's reaffirmed Buy rating and price target reflect the analyst's confidence in the potential of CNM-Au8 to become a significant treatment option for Rett Syndrome.
InvestingPro Insights
In light of Clene Inc.'s recent announcement regarding a reverse stock split, investors may be evaluating the company's financial health and future prospects with a keener interest. According to the latest data from InvestingPro, Clene Inc. has a market capitalization of approximately $44.61 million. Despite a modest revenue growth of 12.73% in the last twelve months as of Q1 2024, the company is facing challenges as reflected in its significant negative operating income margin of -6296.77% for the same period. Furthermore, Clene's price to book ratio stands at a high 10.46, which could suggest that the stock is trading at a premium relative to its book value.
Investors should also consider the "InvestingPro Tips" which highlight that Clene Inc. is rapidly depleting its cash reserves and analysts do not expect the company to turn a profit this year. Moreover, the company is anticipated to experience a sales decline in the current year. These factors could be crucial for investors who are contemplating the impact of the reverse stock split and the company's ability to maintain compliance with Nasdaq's listing requirements.
For those seeking a deeper dive into Clene's financial metrics and additional expert analysis, there are more "InvestingPro Tips" available, providing a comprehensive outlook on the company's financial position and market valuation. Interested readers can take advantage of a special offer using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription to access these insights and more.
Investing in biopharmaceutical companies like Clene Inc. requires careful consideration of various financial metrics and market conditions. With seven additional "InvestingPro Tips" listed on InvestingPro, investors can gain a more nuanced understanding of the company's performance and make informed decisions.
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