SAN FRANCISCO - Jaguar Health, Inc. (NASDAQ:JAGX), a commercial stage pharmaceuticals company, announced today that it will implement a reverse stock split of its common stock at a ratio of 1-for-60, effective Thursday, May 23, 2024. The move is intended to maintain the company's compliance with Nasdaq's listing standards and to potentially make the stock more appealing to institutional investors.
The decision to proceed with the reverse stock split was made following a vote at a Special Meeting of Stockholders held in April 2024. A majority of voting power from common and Series J Perpetual Preferred stockholders approved the measure, which was previously detailed in a definitive proxy statement filed with the Securities and Exchange Commission on March 15, 2024.
On the effective date, every sixty shares of Jaguar Health's common stock will automatically consolidate into one share, without altering the par value per share. This change will be reflected on the Nasdaq Capital Market under the ticker symbol "JAGX" and will be accompanied by a new CUSIP number 47010C805. No fractional shares will be issued; instead, stockholders entitled to fractions will receive a cash payment.
Equiniti Trust Company, LLC is managing the exchange process for the reverse stock split, providing instructions to stockholders with physical stock certificates. Those holding shares in brokerage accounts, or "street name," will not require any action to complete the exchange of their shares.
Jaguar Health focuses on developing plant-derived prescription medicines for gastrointestinal conditions in humans and animals. Its family of companies includes Napo Pharmaceuticals, Napo Therapeutics in Italy, and Magdalena Biosciences—a joint venture aimed at developing plant-based medicines for mental health.
This corporate action comes as part of Jaguar Health's strategy to align its share structure and price with market expectations and to potentially attract a broader range of investors. The information regarding the reverse stock split is based on a press release statement.
InvestingPro Insights
In light of Jaguar Health's recent announcement of a reverse stock split, investors may be seeking additional context to understand the company's financial health and market performance. According to InvestingPro real-time data, Jaguar Health, Inc. (NASDAQ:JAGX) currently has a market capitalization of $71.4 million USD. The company's revenue over the last twelve months as of Q1 2024 stands at $10.14 million USD, though it experienced a revenue decline of 10.29% during the same period. Furthermore, the company's stock has seen a significant price increase over the last month and three months, with total returns of 73.86% and 267.09%, respectively.
An InvestingPro Tip highlights that Jaguar Health's stock generally trades with high price volatility, which could be a crucial factor for potential investors considering the company's reverse stock split strategy. Additionally, the stock is trading at a high Price / Book multiple of 6.1, which is another important metric to consider when evaluating the company's current valuation.
For investors looking for a deeper dive into Jaguar Health's financials and stock performance, InvestingPro offers a wealth of additional tips. There are currently 9 more tips available on InvestingPro, which can be accessed by visiting the company's dedicated page at https://www.investing.com/pro/JAGX. These tips provide insights into the company's profitability, historical price performance, and dividend policy, among other aspects.
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