YARDLEY, Pa. - Optinose, Inc. (NASDAQ: NASDAQ:OPTN), a specialty pharmaceutical company whose stock has declined over 70% year-to-date according to InvestingPro data, has announced a reverse stock split in an effort to comply with Nasdaq's minimum bid price requirement. The 1-for-15 reverse stock split is scheduled to take effect after market close on December 30, 2024, with trading on a split-adjusted basis beginning December 31, 2024.
The company's common stock will continue trading on the Nasdaq Global Select Market under its existing ticker symbol OPTN, but with a new CUSIP number. This move follows approval from Optinose's stockholders at a special meeting on December 23, 2024, authorizing the Board of Directors to implement the reverse stock split.
The reverse stock split will reduce the number of Optinose's outstanding common shares from approximately 150.8 million to about 10.1 million. It will be proportionally applied to all issued and outstanding shares, outstanding options, warrants, and the number of shares reserved for future issuance under the company's stock incentive and employee stock purchase plans. Despite challenging market conditions, InvestingPro data shows the company maintains impressive gross profit margins of 90%, though it faces significant cash burn challenges.
Shareholders will not need to take any action as a result of the reverse stock split. However, those holding fractional shares as a result of the consolidation will receive cash in lieu of their fractional share, based on the closing price of Optinose's common stock on Nasdaq on December 30, 2024. Broadridge Corporate Issuer Solutions, Inc. has been appointed as the exchange agent for the reverse stock split and will provide instructions to shareholders on the exchange process.
The reverse stock split is aimed at boosting the company's stock price to maintain its listing on the Nasdaq exchange, which requires a minimum closing bid price of $1.00. The authorized shares of common and preferred stock will not be reduced, and their par values will remain unchanged.
Further details about the reverse stock split can be found in Optinose's Definitive Proxy Statement filed with the Securities and Exchange Commission on December 12, 2024, which is available on both the SEC's and Optinose's websites. According to InvestingPro analysis, the stock appears undervalued at current levels, with 12 additional ProTips and comprehensive financial metrics available to subscribers through the Pro Research Report, offering deeper insights into the company's financial health and market position.
This news is based on a press release statement from Optinose, Inc. and does not include any speculative content or forward-looking statements provided by the company.
In other recent news, OptiNose shareholders approved a proposal for a reverse stock split, a strategy aimed at boosting the per-share trading price and maintaining Nasdaq's minimum bid price requirement. The exact timing and ratio of the split will be decided by the Board of Directors. This corporate action occurs as OptiNose focuses on strengthening its financial position amid some near-term liquidity challenges.
In the company's recent earnings report, OptiNose announced third-quarter earnings per share of $0.00 and revenue of $20.4 million, falling short of analysts' expectations. Consequently, Piper Sandler adjusted its price target for OptiNose from $3 to $1, while maintaining an Overweight rating. The company also revised its 2024 sales forecast for Xhance, its nasal spray treatment, to a range of $75 million to $79 million.
Despite the revised sales forecast, OptiNose reported a 3% year-over-year increase in Q3 2024 net revenue for Xhance, reaching $20.4 million. The company remains optimistic about new prescription growth and plans to enhance insurance coverage and fulfillment processes. In line with this, OptiNose is actively exploring primary care partnerships to reach a larger patient base. These are recent developments reflecting OptiNose's ongoing commitment to its product Xhance.
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