In a strategic move aimed at bolstering its market standing, Genprex Inc, the clinical-stage gene therapy company specializing in groundbreaking treatments for cancer and diabetes, has declared its intent to implement a 1-for-40 reverse stock split. The announcement, made today, sends ripples through the financial landscape as the company navigates efforts to comply with Nasdaq’s minimum bid continued listing requirement.
Scheduled to take effect at 12:01 a.m. Eastern Time on February 2, 2024, the reverse stock split will see Genprex Inc’s common stock trading on a post-split adjusted basis under the familiar symbol “GNPX.” The move follows the approval by the Board of Directors, who exercised their discretion as authorized by the stockholders at a special meeting held on December 14, 2023. During this meeting, stockholders granted the Board the flexibility to execute a reverse stock split at a ratio between 1:10 and 1:50.
Genprex Inc’s stock, which closed trading at $0.26 on Tuesday, experienced an immediate impact following the announcement, opening at $0.21 on Wednesday morning. The reverse stock split is positioned as a strategic maneuver to elevate the market price per share, a calculated effort to regain compliance with Nasdaq’s listing standards.
At the time of this publication, Genprex Inc stock (GNPX) has witnessed a decline.
Genprex Inc
Current Price: $0.19
Change : -0.08
Change (%): (-28.20%)
Volume: 1.9M
Source: Tomorrow Events Market Data
Under the reverse split structure, every 40 shares of common stock will be consolidated into one, streamlining the company’s capital structure. Importantly, fractional shares resulting from the split will not be issued. Stockholders entitled to a fractional share will see it rounded up to the nearest whole share. This financial maneuvering is projected to leave Genprex Inc with approximately 1.5 million shares of common stock post-split.
In a bid to reassure investors, the company emphasized that the reverse split will not alter the par value of the common stock or modify any rights or preferences associated with it. The move is positioned as a uniform adjustment, affecting all stockholders equally. The board has taken steps to ensure that no stockholder’s percentage interest in the company’s equity is impacted, except in cases where fractional shares may arise.
Genprex Inc’s transfer agent, VStock Transfer, LLC, is expected to continue maintaining the book-entry records for the company’s common stock, providing a seamless transition for investors.
As the reverse stock split looms, the market will undoubtedly be closely monitoring Genprex Inc’s trading patterns and investor sentiment. The strategic decision reflects the company’s commitment to strengthening its financial position and adapting to market demands in the dynamic landscape of gene therapy.
