Houston-based Salarius Pharmaceuticals, Inc. has filed with the U.S. Securities and Exchange Commission (SEC) to offer additional shares of common stock. The filing, made on Monday, details the registration of up to $335,921 worth of common stock, with a par value of $0.0001 per share.
Salarius, which operates under the pharmaceutical preparations industry, is proceeding with the offering under an existing agreement with Ladenburg Thalmann & Co. Inc., dated February 5, 2021. This move follows the effective registration statement on Form S-3 filed on August 5, 2022, and declared effective by the SEC on August 16, 2022.
The offering is made pursuant to a prospectus supplement, which was filed on July 25, 2024. The company has also provided a legal opinion from Hogan Lovells US LLP regarding the validity of the shares being registered. This opinion is included in the filing and serves to affirm the legality of the shares offered.
Salarius Pharmaceuticals, previously known as Flex (NASDAQ:FLEX) Pharma, Inc. before a name change on July 30, 2014, is incorporated in Delaware and lists its fiscal year-end as December 31. The company's common stock is listed on The Nasdaq Capital Market under the ticker symbol NASDAQ:SLRX.
The company's executive offices are located at 2450 Holcombe Blvd., Suite X, Houston, TX, 77021, with the same address for its business and mail correspondence.
In other recent news, Salarius Pharmaceuticals has registered two new stock offerings, aiming to raise up to $1,146,894 through the sale of common stock. Ladenburg Thalmann & Co. Inc. is overseeing the offerings under an At the Market Offering Agreement. The firm also decided to discontinue its Phase 1/2 clinical trial of seclidemstat for Ewing sarcoma, as part of a strategy to conserve cash while seeking strategic alternatives.
In addition, Salarius faced a serious setback when a patient in a clinical trial experienced a grade 4 adverse event, leading to a partial clinical hold by the U.S. Food and Drug Administration. Despite this, the company will continue to support a separate clinical trial conducted by The University of Texas MD Anderson Cancer Center.
To meet Nasdaq's minimum bid price requirement, Salarius announced a 1-for-8 reverse stock split, reducing the number of issued and outstanding common stock shares. Equiniti Trust Company, LLC, has been appointed as the exchange agent and transfer agent for the reverse split process.
InvestingPro Insights
As Salarius Pharmaceuticals looks to increase its funding through equity sales, potential investors may benefit from recent data and analysis from InvestingPro. The company's market capitalization currently stands at a modest $1.15 million, and with a negative price-to-earnings (P/E) ratio of -0.16, it reflects the challenges the company faces in achieving profitability. In fact, analysts do not anticipate Salarius will be profitable this year, a sentiment echoed by the company's negative return on assets of -82.83% over the last twelve months as of Q2 2024.
InvestingPro Tips suggest that Salarius holds more cash than debt on its balance sheet, which could provide some financial flexibility. However, it's also noted that the stock has experienced high volatility and has taken a significant hit over the last week, with a one-week price total return of -16.95%. Additionally, the stock's price performance has been poor over the last decade, with a one-year price total return as of 2024 at -62.19%. These factors could indicate a higher risk profile for investors considering this stock.
For those interested in a deeper dive, InvestingPro offers additional insights and tips on Salarius Pharmaceuticals, which can be found at https://www.investing.com/pro/SLRX. This includes a total of 13 InvestingPro Tips that can provide further guidance on whether Salarius's stock aligns with individual investment strategies.
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