LA JOLLA, CA - GRI Bio, Inc. (NASDAQ: GRI), a biotech company specializing in therapies for inflammatory and autoimmune diseases, has announced a 1-for-13 reverse stock split approved by its board of directors and shareholders. The reverse split is set to take effect after the market closes on June 17, 2024, with shares trading on a post-split basis on The Nasdaq Capital Market starting June 18, 2024.
This strategic move aims to elevate the company's per-share trading price, thereby assisting GRI Bio in maintaining compliance with Nasdaq's minimum bid price requirement. As a result of the reverse split, every thirteen shares of existing common stock will be consolidated into one share. Consequently, the total outstanding shares will be reduced from approximately 6.6 million to about 508,091 shares, though the total authorized shares will remain unchanged.
Stockholders will not receive fractional shares in the reverse split. Instead, they will be compensated with a cash payment equivalent to the fractional share's value based on the closing sale price of the common stock on the day of the split, adjusted for the reverse stock split.
Adjustments will also be made to the exercise and conversion prices of GRI Bio's outstanding stock options, warrants, and convertible securities, aligning with the new stock structure. Shareholders with shares in electronic book-entry form or through a bank, broker, or other nominee need not take any action as their holdings will automatically reflect the reverse stock split.
Those holding physical stock certificates will be contacted by the company's transfer agent, Broadridge Corporate Issuers Solutions, Inc., with instructions for exchanging their certificates for book-entry shares or new certificates representing the post-split share count. Additionally, cash payment instructions for fractional shares will be provided, if applicable.
The information in this article is based on a press release statement from GRI Bio, Inc.
In other recent news, GRI Bio, Inc. has reported promising preclinical data for its novel type 2 Natural Killer T (NKT) cell activators, GRI-0803 and GRI-0124, in the treatment of systemic lupus erythematosus (SLE). The company plans to file an Investigational New Drug (IND) application for GRI-0803 in the second half of 2024.
In another development, GRI Bio announced positive preclinical findings for its lead compound GRI-0621, a selective inhibitor of type 1 invariant NKT cells, which may reduce fibrosis and inflammation in Idiopathic Pulmonary Fibrosis (IPF). The ongoing Phase 2a biomarker study of GRI-0621 aims to evaluate its safety, tolerability, and effect on biomarkers in IPF patients.
Moreover, GRI Bio has been granted patents by the Korean Intellectual Property Office (KIPO) and the Canadian Intellectual Property Office, strengthening its global intellectual property portfolio. These patents relate to the prevention and treatment of inflammatory liver conditions and encompass compositions and methods aimed at modulating type 2 and type 1 invariant NKT cells.
These are recent developments in GRI Bio's ongoing research and development efforts.
InvestingPro Insights
In light of GRI Bio's recent announcement regarding a reverse stock split, it's important to consider the company's financial health and market performance. According to InvestingPro data, GRI Bio's market capitalization stands at a modest $0.98 million USD. The company's price-to-earnings (P/E) ratio is currently negative, at -0.03, indicating that it is not generating profits based on its latest earnings. Furthermore, with a price/book ratio of 0.35 as of the last twelve months ending Q1 2024, investors may find the company's stock to be valued below its net asset value, which could suggest that the stock is undervalued or that the company is experiencing financial difficulties.
InvestingPro Tips reveal that GRI Bio holds more cash than debt, which could provide some financial flexibility. However, the company's stock has been performing poorly, with significant price declines over various time frames, including a 36.18% drop over the last month and a staggering 99.44% fall over the past year. Additionally, the Relative Strength Index (RSI) suggests that the stock is in oversold territory, which could interest traders looking for potential rebounds or indicate that the market is bearish on the stock's prospects.
For investors considering GRI Bio as an investment opportunity, these metrics and tips are crucial. With the reverse stock split aimed at improving the company's market standing, understanding these financial indicators can help in making an informed decision. For more detailed analysis and additional InvestingPro Tips, visit Investing.com/pro/GRI. There are 14 more tips available on InvestingPro that could provide further insights into GRI Bio's financial state and market performance. Take advantage of these insights and use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.