In a recent move, Phio Pharmaceuticals Corp. (NASDAQ:PHIO), a biotechnology firm specializing in pharmaceutical preparations, has amended its 2020 Long Term Incentive Plan following approval from its shareholders. The amendment, which was voted on during the company's Annual Meeting on Monday, increases the number of shares available for issuance under the plan by 500,000, bringing the total to 725,500 shares.
The decision, detailed in an 8-K filing with the Securities and Exchange Commission, comes as part of a broader set of proposals presented to and approved by the stockholders.
The meeting, held on Monday, also saw the election of five directors to serve until the 2025 Annual Meeting of Stockholders, the ratification of BDO USA, P.C. as the independent registered public accounting firm for the fiscal year ending December 31, 2024, and an amendment to the company's Amended and Restated Certificate of Incorporation to potentially effect a reverse stock split.
The reverse stock split proposal, which was approved, authorizes the Board of Directors to implement a reverse split of the outstanding shares of common stock at a ratio of not less than 1-for-2 and not greater than 1-for-9, with the exact ratio and timing to be determined by the Board. The specific details will be disclosed in a separate filing once they are finalized.
The election of directors resulted in Robert J. Bitterman, Patricia A. Bradford, Robert L. Ferrara, Jonathan E. Freeman, Ph.D., and Curtis A. Lockshin, Ph.D. being elected, with the number of votes for each director ranging from 559,606 to 592,469, and withheld votes ranging from 54,830 to 87,693.
The ratification of auditors passed with 2,075,307 votes for, 84,708 against, and 44,330 abstentions. The reverse stock split received 1,879,666 votes for, 313,572 against, and 11,107 abstentions. The amendment and restatement of the 2020 Plan garnered 507,168 votes for, 135,275 against, and 4,856 abstentions.
The company's focus remains on the development of innovative therapies, with the expanded incentive plan aimed at attracting and retaining key talent to further its mission. This information is based on the SEC filing by Phio Pharmaceuticals Corp. and provides a factual account of the company's recent corporate actions.
In other recent news, Phio Pharmaceuticals Corp. has reported a series of key developments. The biotechnology firm secured a patent in South Korea for its INTASYL RXI-185 compound, a potential treatment for skin aging and disorders. Concurrently, the company has advanced to the next dose concentration in its Phase 1b clinical trial of PH-762, following a positive safety review.
Phio also secured an investment from TRITON Funds, resulting in the purchase of approximately 18.8% of its common shares, a transaction expected to yield gross proceeds of up to $621,000. The company's INTASYL siRNA gene silencing technology was a significant factor in securing this investment.
Furthermore, the company presented new preclinical data on its INTASYL Compound PH-905 at the 10th Immunotherapy of Cancer Conference (ITOC10) in Munich, Germany. This data demonstrated the compound's potential to enhance the effectiveness of natural killer (NK) cells in fighting cancer. These developments represent recent progress in Phio's ongoing endeavors.
InvestingPro Insights
As Phio Pharmaceuticals Corp. (NASDAQ:PHIO) navigates through its corporate strategies, including the expansion of its Long Term Incentive Plan, real-time data from InvestingPro offers a deeper financial context. The company's market capitalization stands at a modest $3.17 million, reflecting the size and scale of the business in the competitive biotech industry.
Notably, Phio's price to book ratio for the last twelve months as of Q1 2024 is 0.56, which might suggest that the company's stock is potentially undervalued relative to its assets. Still, the company's gross profit for the same period was in the negative at -$5.35 million, underscoring the challenges it faces in generating profitability.
InvestingPro Tips highlight that Phio holds more cash than debt on its balance sheet and that its liquid assets exceed short-term obligations, providing a degree of financial flexibility in the short term. Nonetheless, the company has been quickly burning through cash and has not been profitable over the last twelve months.
Analysts predict the company will be profitable this year, which could indicate a potential turnaround for investors to watch. For readers looking to delve deeper into Phio's financial health and future prospects, InvestingPro offers additional tips on its platform.
Prospective and current investors may find these insights particularly relevant as they consider the implications of the company's recent shareholder-approved actions. To explore further, use coupon code PRONEWS24 for an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro, where 11 more tips are available to guide your investment decisions in Phio Pharmaceuticals Corp.
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