Panbela Therapeutics, a clinical-stage company dedicated to developing innovative therapeutics for patients with urgent unmet medical needs, witnessed a significant downturn in its stock today following the implementation of a previously announced and stockholder-approved 1-for-20 reverse split of its common stock.
The stock of Panbela Therapeutics, which had concluded Wednesday’s trading at $8.68, commenced Thursday’s trading at $8.20. However, after the reverse stock split took effect, Panbela Therapeutics experienced a notable decline. The company’s common stock also began trading on a post-split basis today, utilizing the existing trading symbol “PBLA,” and the CUSIP number for the common stock post-split is 69833W404.
At the time of this publication, Panbela Therapeutics Inc stock (PBLA) has witnessed a decline.
Panbela Therapeutics Inc
Current Price: $6.40
Change : -2.28
Change (%): (-26.23%)
Volume: 113.3K
Source: Tomorrow Events Market Data
Primarily aimed at increasing the market price per share of the company’s common stock to regain compliance with the continued listing requirements of The Nasdaq Capital Market, the reverse stock split is part of Panbela Therapeutics’ strategic plan. The company expresses its intention to pursue additional actions to meet the exchange’s other continued listing requirements.
As a result of the reverse stock split, the estimated number of outstanding shares of the company’s common stock will be reduced to 480 thousand shares. Proportionate adjustments will be applied to the conversion and exercise prices of the company’s outstanding stock purchase warrants and stock options. Additionally, adjustments will be made to the number of shares issued and issuable under the company’s equity incentive plans. Importantly, the number of shares authorized for issuance will not decrease due to the reverse stock split.
Upon the effectiveness of the reverse stock split, every 20 shares of the company’s issued and outstanding common stock will automatically combine and convert into one issued and outstanding share of common stock. This action will uniformly impact all stockholders and will not alter any stockholder’s relative interest in the company’s equity, except in cases where it results in fractional shares. Holders entitled to fractional shares will receive a cash payment in lieu of such fractional share.
The reverse stock split will not alter the par value of the common stock or modify the rights and preferences of the common stock. VStock Transfer, LLC, the company’s transfer agent, is acting as the paying agent for the reverse stock split. Stockholders holding pre-split shares in certificate form will receive a letter of transmittal from VStock Transfer, providing instructions for the exchange of shares. However, registered stockholders holding pre-split shares electronically in book-entry form are not required to take any action.
Stockholders owning shares through a broker, bank, trust, or other nominee will see their positions automatically adjusted to reflect the reverse stock split, without the need for any action on their part.
