HOUSTON - Salarius Pharmaceuticals, Inc. (NASDAQ: SLRX), a biopharmaceutical company focused on developing cancer therapies, has announced a reverse stock split in a bid to comply with Nasdaq's minimum bid price requirement. The 1-for-8 split is scheduled to take effect after the market closes on June 14, 2024, with trading on a split-adjusted basis to begin on Monday, June 17, 2024.
The reverse stock split aims to boost Salarius' stock price to meet the $1.00 minimum closing bid price mandated for continued listing on the Nasdaq Capital Market. This move follows the approval from Salarius' stockholders at a special meeting on May 9, 2024, authorizing the Board of Directors to determine the appropriate split ratio within the range of 1-for-4 to 1-for-8.
Upon the reverse split's effectiveness, the number of Salarius' issued and outstanding common stock shares will decrease from roughly 4.7 million to about 0.6 million. The company's stock will continue trading under the existing ticker symbol SLRX but will have a new CUSIP number, 79400X404.
The reverse stock split will be implemented uniformly for all stockholders, ensuring that no stockholder's ownership percentage is affected, except where fractional shares result in cash payouts. The cash compensation for fractional shares will be based on the Nasdaq Capital Market's closing price of Salarius' common stock on June 14, 2024.
Furthermore, all outstanding options and warrants will be adjusted in accordance with the reverse split. The number of shares reserved for future issuance under Salarius' 2015 Equity Incentive Plan and the 2015 Employee Stock Purchase Plan will also be appropriately adjusted.
Equiniti Trust Company, LLC, is the designated exchange agent and transfer agent for the reverse split process. Stockholders holding physical certificates will receive instructions on exchanging their pre-split stock certificates for post-split shares in book-entry form and obtaining payment for any fractional shares.
InvestingPro Insights
As Salarius Pharmaceuticals, Inc. (NASDAQ: SLRX) prepares for a reverse stock split to meet Nasdaq's minimum bid price requirement, investors are closely monitoring the company's financial health and market performance. According to InvestingPro data, Salarius currently holds a market capitalization of 2.1 million USD, reflecting the scale of the company within the biopharmaceutical industry. The company's price-to-book ratio, as of the last twelve months leading up to Q1 2024, stands at 0.58, suggesting that the stock may be undervalued relative to its assets.
However, Salarius faces significant challenges, as evidenced by a substantial negative return on assets of -119.38% during the same period, indicating difficulties in generating profit from its assets. Furthermore, the company's share price has experienced a considerable decline, with a one-year total return of -73.33%, highlighting the market's bearish sentiment towards the stock.
InvestingPro Tips provide additional context for potential investors. Salarius has more cash than debt on its balance sheet, which could be a sign of financial stability. On the other hand, the company suffers from weak gross profit margins and is not expected to be profitable this year, as analysts do not anticipate a turnaround in the near term. Moreover, Salarius has not been profitable over the last twelve months and does not pay a dividend, which might deter income-focused investors.
For investors seeking a deeper analysis, there are additional InvestingPro Tips available, including insights into the company's financial performance and market trends. With the use of coupon code PRONEWS24, readers can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking a comprehensive suite of tools and data to inform their investment decisions.
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