NEW YORK - Synaptogenix, Inc. (NASDAQ:SNPX), a clinical-stage biopharmaceutical company with a market capitalization of $3.48 million, announced today that it has established an independent Special Committee of its Board of Directors. The committee is tasked with exploring strategic opportunities aimed at creating and enhancing value for its investors. This initiative is underpinned by the company's financial standing, which includes $19.6 million in cash as of September 30, 2024, and approximately 1.3 million common shares outstanding. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value metrics.
The company's CEO, Dr. Alan Tuchman, indicated that Synaptogenix is well-positioned with significant cash reserves to pursue strategic initiatives. These may encompass the development of promising drug platforms or the acquisition of new technologies and services. Dr. Tuchman also noted that as the company shifts focus from its prior research and development programs, a substantial reduction in the cash burn rate is anticipated, which is expected to sustain the company's financial health. InvestingPro data shows the company maintains a strong current ratio of 65.36, though it has experienced significant share price decline with a -62.27% year-to-date return.
Synaptogenix has expressed interest in advancing its lead therapeutic candidate, Bryostatin-1, potentially in partnership with a third party that would provide strategic and non-dilutive investment. Moreover, the company has submitted a grant proposal to the National Institutes of Health (NIH) for Bryostatin-1's development.
Previously involved in clinical and preclinical studies targeting neurodegenerative diseases, including Alzheimer's disease and Fragile X syndrome, Synaptogenix has also explored Bryostatin-1's potential in other conditions like multiple sclerosis, stroke, and traumatic brain injury. The U.S. Food and Drug Administration has granted Orphan Drug Designation for Bryostatin-1 in the treatment of Fragile X syndrome.
However, the company cautions that forward-looking statements in the press release are subject to various risks and uncertainties. There is no certainty that the clinical development of Bryostatin-1 will prove successful or that it will receive regulatory approval or be successfully commercialized. InvestingPro subscribers have access to additional insights through multiple ProTips, including detailed analysis of the company's cash position and operational efficiency. Get the full financial picture with an InvestingPro subscription.
The information for this article is based on a press release statement from Synaptogenix, Inc.
In other recent news, Synaptogenix, Inc. held its Annual Meeting of Stockholders where key proposals were approved. Notably, shareholders sanctioned the issuance of shares of common stock underlying shares of convertible preferred stock and warrants, authorized an increase in the total number of shares for issuance under the 2020 Equity Incentive Plan, and ratified the appointment of Stephano Slack as the company's independent registered public accounting firm for the fiscal year ending December 31, 2024. Directors Joshua Silverman and William S. Singer were re-elected to the board, serving until the 2027 annual meeting.
The company has also secured $5 million in preferred stock financing which will fund strategic opportunities, including potential acquisitions and innovative research. A new series of preferred stock, the Series C Convertible Preferred Stock, has been created offering investors a 5% annual dividend which can increase to 15% under certain conditions. The maturity date of its Series B Convertible Preferred Stock has been extended.
In partnership with the Neuroscience Center of Excellence at LSU Health New Orleans, Synaptogenix has initiated pre-clinical trials for polyunsaturated fatty acid (PUFA) analogs, targeting spinal cord injuries. The company has received FDA authorization to proceed with a clinical trial for Bryostatin-1, a potential treatment for multiple sclerosis, to be conducted at the Mellen Center for Multiple Sclerosis, part of the Cleveland Clinic Neurological Institute. Lastly, Synaptogenix has regained compliance with Nasdaq's minimum bid price requirement through a 1-for-25 reverse stock split.
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