SAN DIEGO - Daré Bioscience, Inc. (NASDAQ: DARE), a biopharmaceutical company focusing on women's health, has announced a 1-for-12 reverse stock split of its common stock, set to take effect at the start of trading on Monday, July 1, 2024. This strategic move aims to elevate the company's bid price and secure its compliance with the Nasdaq Capital Market's minimum bid price requirement.
The decision for the reverse split was backed by the company's stockholders during the annual meeting on June 5, 2024. Post-split, the total issued and outstanding shares of Daré Bioscience will decrease from approximately 101.1 million to about 8.4 million. The stock will continue trading under the ticker DARE, with a new CUSIP number of 23666P200.
In preparation for the split, adjustments will be made to the per share exercise prices and the number of shares underlying the company's outstanding stock options, as well as the shares available for future awards under stock incentive plans. This also applies to outstanding warrants for purchasing company stock. Stockholders will not need to take any action as the combination and reduction in shares will occur automatically.
No fractional shares will be issued due to the reverse stock split. Instead, stockholders entitled to fractional shares will receive a rounded up whole share. This action is designed to maintain the proportionate voting power and ownership interest of all stockholders, barring minor changes due to the rounding of fractional shares.
Daré Bioscience emphasizes that the reverse stock split will not alter the number of authorized shares or the par value per share of the company's common stock. Equiniti Trust Company, LLC will serve as the exchange agent for the split and will provide stockholders with a transaction notice indicating their post-split share count.
The reverse stock split is part of Daré Bioscience's efforts to continue its innovation in women's health, with a portfolio including XACIATO™ for bacterial vaginosis treatment and several other potential first-in-category candidates in clinical development.
This information is based on a press release statement from Daré Bioscience, Inc.
In other recent news, Dare Bioscience reported its Q1 2024 financial results, revealing $2.7 million in general and administrative expenses, $3.3 million in research and development expenses, and a quarter-end balance of $3.6 million in cash and cash equivalents.
In addition, the company secured a $22 million non-dilutive strategic royalty financing and $1.8 million in grant funding. Progress was noted in various programs, including the Phase 3 assets like XACIATO for bacterial vaginosis and Sildenafil Cream for female sexual arousal disorder.
Jones Trading, after reviewing these earnings, adjusted its outlook on Dare Bioscience, reducing the price target to $5.00 from the previous $6.00, while maintaining a Buy rating on the stock. The revised price target reflects the exclusion of anticipated future royalty revenues from the firm's financial model. However, the analyst emphasized that Dare Bioscience still retains the commercial upside for Xaciato.
Looking forward, Dare Bioscience is awaiting FDA feedback on the Phase 3 trial design for its Sildenafil Cream, expected in Q2 of 2024. Furthermore, initial pivotal data for Ovaprene, a non-hormonal contraceptive, is anticipated to be released in 2025 or 2026. These recent developments indicate the company's ongoing commitment to advancing its pipeline of innovative treatments for women's health.
InvestingPro Insights
As Daré Bioscience, Inc. (NASDAQ: DARE) embarks on a reverse stock split to bolster its Nasdaq listing status, investors and stakeholders may be curious about the company's financial health and market performance. According to InvestingPro data, Daré Bioscience's market capitalization stands at $43.6 million. This valuation reflects the company's perceived worth in the market, which is particularly relevant given the reverse stock split's intention to enhance stock market appeal.
The company's recent financial metrics show a gross profit margin of -668.35% for the last twelve months as of Q1 2024, indicating challenges in generating profit from sales. Moreover, Daré Bioscience has experienced a significant revenue decline of -71.83% over the same period. These figures suggest that while the reverse stock split may help with stock market compliance, the company faces underlying financial performance issues that investors should consider.
InvestingPro Tips highlight several areas of concern, such as a quick cash burn rate and the anticipation of a sales decline in the current year. With the company not expected to be profitable this year and short-term obligations exceeding liquid assets, these factors are crucial for investors to monitor in the context of Daré Bioscience's strategic moves.
For those interested in a deeper analysis, InvestingPro offers additional insights into Daré Bioscience's financials and market performance. There are 8 more InvestingPro Tips available at https://www.investing.com/pro/DARE. Readers looking to leverage these insights can take advantage of an exclusive offer by using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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