In a strategic move to meet Nasdaq Capital Market’s minimum bid price requirement, Processa Pharmaceuticals Inc (NASDAQ: PCSA) has implemented a 1-for-20 reverse stock split, effective from the market open on Monday, January 22, 2024. This decision, ratified by the Board of Directors on January 8, 2024, signifies a significant shift in the company’s trading dynamics.
At the time of this publication, Tesla Inc stock (PCSA) has witnessed a decline.
Processa Pharmaceuticals Inc
Current Price: $2.84
Change : -1.67
Change (%): (-37.00%)
Volume: 356.4K
Source: Tomorrow Events Market Data
The reverse stock split of Processa Pharmaceuticals, with a ratio of 1-for-20, consolidates every twenty shares into one, without altering the par value per share. The company will continue trading under the ticker symbol PCSA, but with a new CUSIP number 74275C304.
This strategic maneuver follows stockholder approval on November 14, 2023, as the company endeavors to align itself with Nasdaq’s stringent standards. The expected outcome is a reduction in outstanding common shares from approximately 24.6 million to about 1.2 million.
Proportionate adjustments will be applied to outstanding equity awards, warrants, and shares issuable under equity incentive plans, along with applicable exercise prices. Notably, no fractional shares will be issued, with stockholders receiving rounded-up whole share numbers, mitigating the need for cash payouts for fractional shares.
Registered stockholders in book-entry form need not take any action, while those holding shares in certificate form will receive instructions from the exchange agent, Continental Stock Transfer & Trust. Shares held in brokerage accounts will be automatically adjusted to reflect the reverse stock split.
Processa Pharmaceuticals, a clinical-stage pharmaceutical company specializing in developing chemotherapeutic drugs, aims to enhance safety and efficacy for cancer patients. Their unique development strategy involves modifying existing FDA-approved oncology drugs, potentially leading to reduced side effects, increased cancer response, and broader patient benefits.
Investors and industry observers are advised to refer to the company’s definitive proxy statement filed with the SEC on October 5, 2023, for additional details about the reverse stock split. The move underscores Processa Pharmaceuticals Inc’s commitment to strategic adaptation and compliance within the dynamic landscape of the stock market.
