Forte Biosciences, Inc. (NASDAQ:FBRX), a micro-cap biotech company with a market value of $95.5 million, announced today that its stockholders have approved the amended and restated 2021 Equity Incentive Plan, aimed at attracting, retaining, and motivating personnel.
According to InvestingPro data, the company maintains a healthy balance sheet with more cash than debt, though it's currently experiencing rapid cash burn. The decision was made during a special meeting of stockholders held on Thursday, with a majority voting in favor of the revised plan.
The plan, which originally gained stockholder approval on May 28, 2021, now includes additional shares for issuance. It reserves 3,340,000 shares of common stock, plus any shares from previous incentive plans that were not exercised, terminated, or forfeited since the original approval date. The total number of shares potentially added from these previous plans is capped at 44,093.
Forte Biosciences, a biopharmaceutical company based in Dallas, Texas, focuses on the development of pharmaceutical preparations. The company, incorporated in Delaware, operates under the name 03 Life Sciences following its former identity as Tocagen Inc .
InvestingPro analysis reveals the company's overall financial health score is currently rated as WEAK, with analysts not anticipating profitability this year. Subscribers can access 10+ additional ProTips and detailed financial metrics at InvestingPro.
The equity incentive plan is designed to offer various forms of stock-based compensation, such as stock options, stock appreciation rights, restricted stock, restricted stock units, performance units, and performance shares. These instruments are intended to align the interests of employees, directors, and consultants with those of the company and its stockholders, fostering a shared commitment to Forte Biosciences' success.
During the special meeting, 4,032,759 shares were represented, out of the 6,393,323 shares outstanding as of the record date, December 30, 2024. The final vote count for the approval of the incentive plan was 2,186,796 for, 470,795 against, and 1,375,168 abstentions. With a current ratio of 2.06, the company maintains sufficient liquid assets to meet its short-term obligations, though InvestingPro data indicates the stock has shown high price volatility in recent months.
In other recent news, Forte Biosciences has experienced significant developments. The company recently secured $53 million in equity financing, which will bolster the continued clinical development of their therapeutic candidate FB102. This funding round attracted a mix of new and existing institutional investors, including OrbiMed, Janus Henderson Investors, and Tybourne Capital Management.
TD Cowen initiated its coverage of the biotechnology company with a Buy rating, highlighting the potential of Forte Biosciences' lead candidate, FB102, a monoclonal antibody targeting CD122. Analysts from TD Cowen are particularly optimistic about the upcoming Phase 1 proof-of-concept data for FB102 in the treatment of celiac disease, expected to be released in 2025.
The company has also undergone significant changes with a reshuffling of its board and a settlement of a pending lawsuit, appointing Richard Vincent and Shiv Kapoor to its Board of Directors and agreeing to pay $1.5 million in attorneys' fees to resolve a lawsuit filed by Camac Fund, LP. Forte Biosciences has executed a 1-for-25 reverse stock split as part of a significant change in its capital structure, leading to adjustments in the company's equity incentive plans.
Brookline Capital Markets initiated coverage with a Buy rating for Forte Biosciences, citing the potential of FB-102, an antibody currently in development for the treatment of graft versus host disease.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.