NAPLES, Fla. and CAMBRIDGE, United Kingdom (TADAWUL:4280) - Conduit Pharmaceuticals Inc. (NASDAQ:CDT), a clinical stage life science company with a current market capitalization of $7.49 million, announced that it will implement a 1-for-100 reverse stock split effective January 24, 2025, after market close. According to InvestingPro data, the company's stock has declined nearly 98% over the past year, trading at $0.06. This action follows the approval from the company's stockholders during the Annual Meeting on December 18, 2024, and is primarily aimed at boosting the company's share price to comply with Nasdaq's minimum bid price requirement.
The reverse stock split is scheduled to commence trading on a split-adjusted basis on January 27, 2025, under the current ticker symbol CDT, with a new CUSIP number. InvestingPro analysis reveals concerning financial metrics, including a current ratio of 0.12, indicating significant liquidity challenges. Subscribers have access to 13 additional ProTips about CDT's financial health and market performance. As a result of the split, every 100 shares of the issued and outstanding common stock will consolidate into one share, while the par value will remain unchanged at $0.0001 per share. This will proportionately adjust the shares issuable upon exercising equity awards, convertible securities, and warrants, as well as the exercise price.
Once the reverse stock split becomes effective, the total number of outstanding shares of common stock will be reduced to approximately 1.5 million. Stockholders who would otherwise hold a fractional share will receive a cash payment in lieu. VStock Transfer, LLC, will act as the exchange agent for the reverse stock split. Registered stockholders with shares in book-entry form need not take any action, and those with shares in brokerage accounts will see their holdings automatically adjusted.
Conduit Pharmaceuticals, led by pharmaceutical executives Dr. David Tapolczay and Dr. Freda Lewis-Hall, operates with a unique business model focused on acquiring and funding the development of Phase 2-ready assets. The company aims for exits through licensing deals post successful clinical trials, diverging from the traditional approach of pursuing regulatory approval.
The company's forward-looking statements in the press release, which include expectations of future operations and financial positions, are subject to various risks and uncertainties. InvestingPro data shows the company is quickly burning through cash, with negative levered free cash flow and challenging financial metrics that investors should monitor closely. These include potential effects on the common stock's price post-split, maintaining Nasdaq listing, and the risks inherent in clinical development and regulatory approvals.
This news is based on a press release statement from Conduit Pharmaceuticals Inc.
In other recent news, Conduit Pharmaceuticals has been actively restructuring its financial landscape. The company recently secured stockholder approval for three key proposals, including the issuance of shares upon the exercise of certain warrants and the conversion of Senior Secured Promissory Notes with Nirland Limited and A.G.P./Alliance Global Partners (NYSE:GLP).
However, Conduit Pharmaceuticals faces potential delisting from the Nasdaq due to non-compliance with the exchange's minimum bid price requirement. In response, stockholders approved a reverse stock split to meet Nasdaq's requirements. The company also appointed Simon Fry as a new director and amended its bylaws.
In addition, Conduit Pharmaceuticals revealed plans to restate its financial statements for the first two quarters of 2024 due to a misclassification of deferred commission payable. The company is also engaged in significant financial arrangements, including the issuance of a convertible promissory note to A.G.P./Alliance Global Partners and an amendment to its agreement with Nirland Limited.
The company has also secured several financing agreements, raising $1.2 million and initiating an at-the-market offering to raise approximately $3.5 million. These recent developments highlight Conduit Pharmaceuticals' efforts to secure additional capital and support its growth strategy.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.