WORCESTER, Mass. - Mustang Bio , Inc. (NASDAQ:MBIO), a clinical-stage biopharmaceutical company, today announced a 1-for-50 reverse stock split of its common stock. The adjustment will take effect as trading begins on January 16, 2025, in an effort to comply with Nasdaq's minimum bid price requirement for continued listing. The company's parent, Fortress Biotech (NASDAQ:FBIO), currently valued at $54.2 million, has shown significant stock volatility according to InvestingPro data.
The reverse stock split was approved by Mustang’s Board of Directors and shareholders with approximately 56% of the voting power on June 27, 2024. This strategic move aims to boost the per-share trading price of the company's stock to satisfy the $1.00 minimum bid price condition set by Nasdaq.
As a result of the reverse stock split, the number of Mustang’s outstanding shares of common stock will decrease from roughly 64.8 million to about 1.3 million. The reduction is subject to adjustments for fractional shares, which will not be issued. Instead, shareholders who would have received fractional shares will get a proportional cash payment.
Mustang's common stock will continue trading on The Nasdaq Stock Market under the ticker symbol "MBIO" with a new CUSIP number of 62818Q302. The company's transfer agent, VStock Transfer, LLC, will manage the exchange and payment process for the reverse stock split and provide instructions to shareholders on exchanging physical share certificates. Shareholders with book-entry shares or those held through a bank, broker, or nominee are not expected to take any action. However, beneficial holders with questions about the procedure are encouraged to contact their bank, broker, or nominee.
Additional details regarding the reverse stock split can be found in Mustang’s Definitive Information Statement on Schedule 14C, filed with the Securities and Exchange Commission on July 10, 2024.
Mustang Bio focuses on developing cell therapies for hard-to-treat cancers and has partnered with top medical institutions to advance the development of CAR-T therapies. The company is a subsidiary of Fortress Biotech, Inc. (NASDAQ:FBIO), which InvestingPro analysis shows is currently burning through cash with a negative free cash flow of $102 million in the last twelve months. Despite challenges, analysts maintain optimistic price targets ranging from $4 to $24, suggesting potential upside. InvestingPro subscribers have access to over 10 additional key insights about FBIO's financial health and market position.
This article is based on a press release statement from Mustang Bio, Inc.
In other recent news, Fortress Biotech has made significant strides with its subsidiaries. The U.S. Food and Drug Administration (FDA) has accepted a New Drug Application from Cyprium Therapeutics, a Fortress Biotech subsidiary, for CUTX-101, a potential treatment for Menkes disease. This milestone follows the agreement with Sentynl Therapeutics, who took over the development and commercialization of CUTX-101. The FDA review of CUTX-101 marks a critical step for both Fortress Biotech and Cyprium.
Another Fortress Biotech subsidiary, Checkpoint Therapeutics (NASDAQ:CKPT), has received FDA approval for UNLOXCYT™, a drug designed to treat advanced stages of cutaneous squamous cell carcinoma. The approval was based on positive results from the clinical trial Study CK-301-101.
On the financial front, Fortress Biotech reported a GAAP EPS of ($0.76) for the third quarter, which was better than the analysts' estimate of ($1.49). However, the revenue for the quarter fell short of the estimated $16.28 million. In response to these developments, H.C. Wainwright maintained a Buy rating on the stock and increased the price target from $24 to $26.
Fortress Biotech has also secured approximately $8 million from stock sales and private placements and entered into a $50 million loan agreement with Oaktree Capital Management. These are the recent developments from Fortress Biotech and its subsidiaries.
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