In a strategic move to address Nasdaq compliance concerns, eFFECTOR Therapeutics, a prominent player in the realm of selective translation regulator inhibitors (“STRIs”) for cancer treatment, disclosed today the approval of a 1-for-25 reverse stock split by its Board of Directors. The reverse stock split of eFFECTOR Therapeutics is slated to take effect at 12:01 A.M. Eastern Time on January 12, 2024, with the company’s common stock continuing to trade on the Nasdaq Capital Market under the existing symbol “EFTR.”
Upon implementation, the reverse stock split will usher in a new CUSIP number for eFFECTOR’s common stock: 28202V207. Trading on a split-adjusted basis will commence when the market opens on January 12, 2024. However, it’s worth noting that the CUSIP number for eFFECTOR’s publicly traded warrants will remain unchanged.
Following this pivotal announcement, the stock of eFFECTOR Therapeutics experienced a notable decline. On Tuesday morning, it opened trading at $0.40, a stark contrast to its Monday closing price of $0.55.
At the time of this publication, eFFECTOR Therapeutics Inc stock (EFTR) has witnessed a decline.
eFFECTOR Therapeutics Inc
Current Price: $0.45
Change : -0.10
Change (%): (-17.62%)
Volume: 5.7M
Source: Tomorrow Events Market Data
The primary motivation behind the reverse stock split is the imperative to regain compliance with the Nasdaq Capital Market’s minimum bid price requirement of $1.00 per share for continued listing. By undertaking this strategic maneuver, eFFECTOR Therapeutics aims to fortify its standing in the competitive market.
The reverse split will have a sweeping impact on all issued and outstanding shares of the common stock of eFFECTOR Therapeutics. At the effective time of the reverse stock split, the number of shares of common stock issued and outstanding will see a substantial reduction—from approximately 74.9 million shares to around 3.0 million shares. Concurrently, the total authorized number of shares of common stock will undergo proportional reduction, moving from 1,000,000,000 to 40,000,000 shares.
In addition to these changes, proportional adjustments will be applied to the number of shares of common stock issuable upon exercise of the Company’s outstanding stock options and warrants, along with the applicable exercise price.
It’s noteworthy that no fractional shares will be issued in connection with the reverse stock split. To address this, stockholders entitled to fractional shares will receive a proportional cash payment instead. Importantly, the reverse stock split is designed to impact all stockholders uniformly and will not alter any stockholder’s percentage interest in the Company’s equity—except for rounding down any fractional shares, which will be compensated in cash.
In the wake of this strategic financial maneuver, eFFECTOR Therapeutics now stands poised to navigate the challenges of the market while reaffirming its commitment to delivering innovative solutions in cancer treatment through its selective translation regulator inhibitors. Market observers will closely monitor the company’s performance as the effects of the reverse stock split unfold in the coming days and weeks.
