CHICAGO - Exicure , Inc. (NASDAQ:XCUR), a biotechnology company, has announced a 1-for-5 reverse stock split of its common stock, effective Tuesday evening, with trading on a split-adjusted basis to begin Wednesday morning. This move is aimed at regaining compliance with Nasdaq's listing requirements.
The reverse stock split was approved by Exicure's stockholders during a special meeting on August 20, 2024, and subsequently by the company's Board of Directors. As a result, every five shares of issued and outstanding common stock will be converted into one share, reducing the total number of outstanding shares from approximately 8.65 million to about 1.73 million. Shareholders' percentage ownership in the company will remain unchanged, barring adjustments for fractional shares.
Shareholders with shares in book-entry form are not required to take any action. Those entitled to fractional shares will receive an additional fraction of a share to round up to a full share, ensuring no fractional shares are issued.
The restructuring follows Exicure's suspension of clinical and development activities as it seeks strategic alternatives to enhance stockholder value. The company, previously engaged in developing nucleic acid therapies, is now exploring options for its biotechnology assets and other opportunities.
The reverse stock split is a technical adjustment and does not impact the number of authorized shares or the par value. This information is based on a press release statement from the company, which also includes cautionary forward-looking statements regarding its ability to meet Nasdaq's listing criteria and the risk of potential delisting.
Investors can find additional details in Exicure's definitive proxy statement filed with the Securities and Exchange Commission on July 30, 2024, accessible via the SEC's and the company's websites.
In other recent news, Exicure Inc., a biotechnology firm, has been facing challenges with its Nasdaq listing due to filing delays. To rectify the situation, the company has been granted an extension by the Nasdaq Hearings Panel to meet the continued listing requirements by September 16, 2024. However, Exicure is yet to submit its annual report for 2023 and the first-quarter report for 2024, which is causing further complications.
Despite these challenges, Exicure has recently undergone operational changes, including a halt in clinical and development activities and a strategic review to enhance stockholder value. In a recent annual meeting of stockholders, all four director nominees were elected to the board and the appointment of Marcum LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2024, was ratified.
Exicure also adjourned its Special Meeting of Stockholders due to insufficient votes to reach a quorum. The company is encouraging stockholders who have not yet cast their votes to do so promptly. These are the recent developments in Exicure's operations.
InvestingPro Insights
As Exicure, Inc. (NASDAQ:XCUR) implements a reverse stock split to adhere to Nasdaq's listing requirements, investors may be weighing the potential impacts on their holdings. Reflecting on the company's current financial situation, InvestingPro data reveals a market capitalization of $3.63 million, indicating a relatively small-scale operation within the biotech industry. With a revenue of $0.5 million in the last twelve months as of Q2 2024, Exicure's financial performance shows a steep revenue decline of 97.9% during the same period.
InvestingPro Tips suggest that Exicure's stock tends to experience high price volatility, which could be important for investors to consider in light of the recent reverse stock split. Additionally, analysts foresee a decrease in net income this year, and the company is not expected to be profitable within the year. These insights are particularly relevant for shareholders evaluating the company's future prospects and the potential for stock price recovery.
Moreover, Exicure's short-term obligations surpassing its liquid assets and a lack of dividend payments may influence investment decisions, especially for those seeking immediate returns or stability. For investors interested in a more comprehensive analysis, there are over nine additional InvestingPro Tips available, offering deeper insights into Exicure's financial health and market performance. For further details, visit the InvestingPro site for Exicure at https://www.investing.com/pro/XCUR.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.