SOLANA BEACH, Calif. - Evoke Pharma, Inc. (NASDAQ: NASDAQ:EVOK), a specialty pharmaceutical company, has announced a 1-for-12 reverse stock split approved by its board of directors.
This action is set to take effect at the start of the trading day on August 1, 2024, on The Nasdaq Capital Market under the ticker EVOK, with the aim of meeting Nasdaq’s minimum bid price requirement.
In the reverse stock split, every 12 existing shares of Evoke Pharma’s common stock will be combined into one share, maintaining the par value of $0.0001 per share without altering the authorized share count.
The company's stockholders had previously granted the board the discretion to implement such a measure at the annual meeting on May 22, 2024, with a specified range for the reverse split ratio.
Stockholders will not receive fractional shares as a result of the reverse split. Instead, they will be compensated with a cash payment proportional to the fractional share they would have received. This adjustment will uniformly affect all shareholders and is not expected to alter any individual’s percentage ownership of the company, except for the minor impact of eliminating fractional shares.
The reverse stock split will also proportionately adjust the terms of Evoke Pharma’s outstanding stock options, warrants, and equity incentive plans, including the respective exercise prices.
Equiniti Trust Company, LLC, the firm's transfer agent, will provide instructions to stockholders on exchanging their share certificates for new ones reflecting the reverse stock split and receiving cash in lieu of fractional shares. Stockholders holding shares in street name will receive similar instructions from their brokers.
Evoke Pharma is known for developing GIMOTI, a nasal spray formulation of metoclopramide, which is used to treat symptoms associated with acute and recurrent diabetic gastroparesis in adults.
The reverse stock split is part of the company's efforts to comply with Nasdaq listing standards, specifically the requirement that the bid price of its common stock must close at $1.00 or more for at least ten consecutive business days.
This announcement is based on a press release statement from Evoke Pharma, Inc.
In other recent news, Evoke Pharma Inc. has made significant amendments to the terms of its outstanding warrants. According to a recent 8-K filing with the SEC, the pharmaceutical company has set a new exercise deadline for its Series A, B, and C Warrants to purchase shares of common stock.
As part of the amendment, if a holder exercises their Series B Warrants before the deadline, their corresponding Series C Warrants will become exercisable for a number of shares of common stock.
Moreover, holders now have the option to receive pre-funded warrants instead of common stock upon exercising their warrants. These pre-funded warrants carry an exercise price of $0.6799 per warrant share, and a nominal exercise price of $0.0001 per share for each pre-funded warrant. The amendment does not alter the number of shares underlying each series of warrants.
These recent developments are part of Evoke Pharma's ongoing adjustments to its financial instruments. They are based on a press release statement filed with the SEC.
InvestingPro Insights
As Evoke Pharma, Inc. (NASDAQ: EVOK) navigates the complexities of the market, including its recent 1-for-12 reverse stock split, investors may seek deeper financial insights. According to real-time data from InvestingPro, Evoke Pharma's market capitalization stands at a humble 4.3 million USD, reflecting the scale of the company within the pharmaceutical industry. Despite the challenges faced, the company has shown a remarkable revenue growth rate over the last twelve months as of Q1 2024, with an increase of 110.49%. This surge in revenue is also seen on a quarterly basis, with a growth of 114.15% for Q1 2024, indicating a positive trend in the company's sales performance.
InvestingPro Tips suggest that while Evoke Pharma holds more cash than debt on its balance sheet, providing some financial stability, analysts do not anticipate the company will be profitable this year. This aligns with the company's reported operating income margin at a negative 110.99% for the last twelve months as of Q1 2024. Additionally, the company's price has seen a significant decline over the last year, which may have been a contributing factor to the decision to implement a reverse stock split in an effort to meet Nasdaq's requirements.
For investors considering Evoke Pharma as part of their portfolio, it may be beneficial to explore the full range of 6 additional InvestingPro Tips available. These tips offer comprehensive analysis and could provide valuable insights into the company's future prospects. Interested investors can access these tips and more detailed metrics at https://www.investing.com/pro/EVOK, and 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.
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