Boston-based pharmaceutical company Galecto, Inc. (NASDAQ:GLTO) has completed a reverse stock split of its common stock, as informed by the company's exchange agent Computershare, Inc. This corporate action took effect on August 29, 2024, after market hours, with every 25 shares of the issued and outstanding common stock being consolidated into one share.
The reverse stock split, which was aimed at increasing the market price of Galecto's common stock, did not alter the par value per share. Shareholders holding fractional shares as a result of the consolidation were compensated by rounding up to the nearest whole number. Following the reverse stock split, Galecto has an updated total of 1,248,266 common shares outstanding.
The decision to implement the reverse stock split was filed with the Secretary of State of the State of Delaware on August 29, 2023, and it became effective nearly a year later. Galecto's business focus is on the development of pharmaceutical preparations, operating under the organization name '03 Life Sciences'.
In other recent news, Boston-based pharmaceutical company Galecto has executed a 1-for-25 reverse stock split, reducing the number of outstanding common shares from approximately 27.1 million to around 1.1 million. This move, approved by stockholders during the Annual Meeting, is part of Galecto's efforts to adjust its capital structure.
The company also announced the election of Anne Prener, M.D., as a Class I director to the Board of Directors and confirmed EY Godkendt Revisionspartnerselskab as the independent auditor for the fiscal year ending December 31, 2024.
Analysts from Oppenheimer have adjusted their price target for Galecto from $10.00 to $9.00 following the company's Q1 2024 financial results, which reported operating expenses of $5.7 million and a cash balance of $27.2 million.
Despite setbacks with its Phase 2b GALACTIC-1 study of GB0139 for idiopathic pulmonary fibrosis, Galecto is examining strategic options including potential mergers, acquisitions, and partnerships, while continuing to advance other clinical programs.
InvestingPro Insights
In light of Galecto, Inc.'s recent reverse stock split, current and prospective investors may find value in the latest data and insights provided by InvestingPro. As of the last twelve months leading up to Q2 2024, Galecto's market capitalization stands at a modest $14.43 million. The company's financial health is bolstered by the fact that it holds more cash than debt on its balance sheet, which is a positive sign for investors concerned about the company's liquidity and long-term viability.
InvestingPro Tips highlight that Galecto's liquid assets exceed its short-term obligations, suggesting that the company is well-positioned to meet its immediate financial commitments. However, it is important to note that analysts are not expecting Galecto to be profitable this year, and the company has not been profitable over the last twelve months. Additionally, Galecto does not pay a dividend, which may be a consideration for income-focused investors.
For those interested in a deeper analysis, there are numerous additional InvestingPro Tips available at https://www.investing.com/pro/GLTO. These insights could prove invaluable for those looking to make informed decisions about their investment in Galecto, particularly in the wake of its recent corporate restructuring.
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