Salarius Pharmaceuticals, Inc., a company specializing in pharmaceutical preparations, has initiated a new registered offering of its common stock shares. On Monday, the Houston-based firm filed a prospectus supplement related to this offering, which will see up to $810,973 of its common stock, with a par value of $0.0001 per share, being made available.
The offering is under an At the Market Offering Agreement dated February 5, 2021, with Ladenburg Thalmann & Co. Inc. This move follows the effective registration statement on Form S-3 filed on August 5, 2022, and subsequently declared effective by the U.S. Securities and Exchange Commission (SEC) on August 16, 2022.
The company's legal counsel, Hogan Lovells US LLP, has provided a legal opinion on the validity of the shares being registered, which is incorporated by reference in the filing. This development is by the company's ongoing business strategies and compliance with SEC regulations.
Salarius Pharmaceuticals, listed on the Nasdaq Capital Market under the ticker NASDAQ:SLRX, is incorporated in Delaware and has its fiscal year-end on December 31. The company, previously known as Flex (NASDAQ:FLEX) Pharma, Inc., underwent a name change on July 30, 2014.
This latest financial maneuver is part of Salarius Pharmaceuticals' broader efforts to secure funding for its operations. The registration of these shares provides the company with a mechanism to raise capital flexibly and efficiently as market conditions permit.
The information for this article is based solely on the recent SEC filing by Salarius Pharmaceuticals.
In other recent news, Salarius Pharmaceuticals has decided to discontinue its Phase 1/2 clinical trial of seclidemstat for Ewing sarcoma. The decision is part of the company's strategy to conserve cash while seeking strategic alternatives.
Furthermore, Salarius faced a serious setback in another clinical trial when a patient experienced a grade 4 adverse event, leading the U.S. Food and Drug Administration to place a partial clinical hold on the trial. Despite these challenges, Salarius will continue to support a separate clinical trial conducted by The University of Texas MD Anderson Cancer Center.
In a bid to meet Nasdaq's minimum bid price requirement, Salarius also announced a 1-for-8 reverse stock split, reducing the number of issued and outstanding common stock shares from approximately 4.7 million to about 0.6 million. The reverse split process will be managed by Equiniti Trust Company, LLC.
InvestingPro Insights
As Salarius Pharmaceuticals, Inc. (NASDAQ:SLRX) navigates through its current financial strategies, including a new stock offering and a reverse stock split, it's important to consider the company's financial health and market performance. According to InvestingPro data, Salarius has a market capitalization of just $0.92 million, reflecting its small-cap status within the pharmaceutical industry. The company's Price to Book ratio stands at 0.25 for the last twelve months as of Q1 2024, suggesting that the market values the company at a quarter of its book value, which could be indicative of investor skepticism about the company's assets or future growth prospects.
InvestingPro Tips highlight some key concerns and strengths for Salarius. The company holds more cash than debt on its balance sheet, which could provide some financial flexibility in the short term. Additionally, its liquid assets exceed short-term obligations, suggesting that Salarius is capable of covering its immediate liabilities. However, analysts have raised concerns, noting weak gross profit margins and anticipating a drop in net income this year. They also do not expect the company to be profitable within the year. Over the last month, the stock has fared poorly, with a one-month price total return of -38.89%, and it has continued to decline over longer periods, with significant drops over the past three, six, and twelve months.
These financial metrics and analyst insights from InvestingPro could be crucial for investors considering participating in the company's common stock offering or evaluating the company's prospects amid its recent clinical trial setbacks and compliance efforts with Nasdaq's requirements. For those looking for more in-depth analysis, there are 12 additional InvestingPro Tips available for Salarius Pharmaceuticals, which can be accessed at https://www.investing.com/pro/SLRX. Investors interested in a subscription can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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