PRINCETON, N.J. - Soligenix, Inc. (NASDAQ: NASDAQ:SNGX), a biopharmaceutical company, is calling on its shareholders to vote in favor of a reverse stock split. The company's leadership believes this move is vital to maintain its listing on the Nasdaq Capital Market. Christopher J. Schaber, PhD, the CEO of Soligenix, emphasized the importance of Nasdaq listing for attracting institutional support, which is crucial for advancing clinical trials and securing funding.
Stockholders of record as of April 10, 2024, are eligible to vote and can do so by contacting Alliance Advisors, the firm handling the proxy solicitation. The company has stressed that even those who have sold their shares since the record date are still eligible to vote.
The reverse stock split is viewed by the company as a strategic step towards enhancing shareholder value. It is intended to increase the market price of Soligenix's common stock, thereby complying with Nasdaq's minimum bid price requirement. This compliance is necessary for the company to continue trading on this major stock exchange, which can impact its visibility and liquidity in the market.
Soligenix is at a critical juncture with its HyBryte™ Phase 3 confirmatory trial and other pipeline clinical programs. The company is developing treatments for rare diseases with unmet medical needs, including a photodynamic therapy for cutaneous T-cell lymphoma (CTCL) and vaccine candidates for various diseases such as COVID-19.
The definitive proxy statement, filed with the SEC on April 29, 2024, contains detailed information regarding the reverse stock split and other proposals. The company has made these materials available to all eligible stockholders.
This news is based on a press release statement from Soligenix, Inc. The company has cautioned that the statements in the press release are forward-looking and subject to risks and uncertainties that could cause actual results to differ materially from those projected. Soligenix has not provided any assurance that the proposed reverse stock split will achieve the desired effects on its stock price or its ability to attract institutional support and funding.
InvestingPro Insights
In light of Soligenix, Inc.'s (NASDAQ: SNGX) consideration of a reverse stock split, a glimpse into the company's financial health and market performance may offer shareholders additional context for their upcoming decision. According to InvestingPro, Soligenix holds more cash than debt on its balance sheet, which could be a sign of financial stability. However, Soligenix is not expected to be profitable this year, and analysts predict a sales decline over the current year, which may be concerning for investors looking for growth.
From a market perspective, Soligenix's shares have struggled over the last decade and have significantly declined in the past three months. The company's Price / Book ratio, as of Q1 2024, stands at a high 7.28, suggesting that the stock might be overvalued when considering the company's book value.
This is particularly relevant as the company's gross profit margin is deeply negative at -442.79% for the last twelve months as of Q1 2024, indicating that Soligenix spends significantly more to produce its goods than it earns from sales.
InvestingPro Data further reveals a market capitalization of $5.6 million USD, with a negative P/E ratio of -0.84 for the last twelve months as of Q1 2024, reflecting investor concerns about the company's earnings prospects. Moreover, the substantial revenue decline of -31.32% over the same period underscores the challenges Soligenix faces in generating sales growth.
For investors seeking a deeper dive into the company's financials and market performance, there are additional InvestingPro Tips available at https://www.investing.com/pro/SNGX. Moreover, by using the coupon code PRONEWS24, investors can get an extra 10% off a yearly or biyearly Pro and Pro+ subscription, gaining access to a total of 9 InvestingPro Tips that could further inform their voting decision on the reverse stock split proposal.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.