NEW YORK - Synaptogenix, Inc. (NASDAQ:SNPX), a biopharmaceutical company focused on developing treatments for neurodegenerative diseases, has announced a reverse stock split of its common stock at a ratio of 1-for-25. This corporate action is set to take effect after market close on Thursday, with trading on a split-adjusted basis to commence on the Nasdaq Capital Market under the existing ticker symbol SNPX on Friday.
The reverse stock split is aimed at increasing the per-share trading price of Synaptogenix's common stock, a strategic move designed to help the company meet the Nasdaq's minimum bid price requirement for continued listing. As a result of the split, the total number of outstanding shares will be reduced from approximately 27.1 million to around 1.1 million, subject to adjustments for fractional shares.
Stockholders do not need to take any action if their shares are held electronically in book-entry form, as their holdings will be automatically adjusted. Those with physical stock certificates will receive instructions from the transfer agent, Pacific Stock Transfer Company, to exchange their certificates for new ones representing the post-split share count.
Instead of issuing fractional shares, stockholders will receive a cash payment for the fractional share based on the adjusted closing sale price of the common stock on April 4, 2024.
Synaptogenix's equity awards, convertible preferred stock, and warrants will also see proportional adjustments in terms of the number of shares issuable upon exercise or conversion, along with the applicable exercise or conversion prices.
The company has conducted clinical and preclinical studies on its lead therapeutic candidate, Bryostatin-1, for Alzheimer's disease and has received Orphan Drug Designation from the U.S. Food and Drug Administration for the treatment of Fragile X syndrome. Despite the optimism surrounding its clinical programs, Synaptogenix acknowledges the inherent risks and uncertainties in drug development that could affect the outcomes of its efforts.
This announcement is based on a press release statement from Synaptogenix, Inc.
InvestingPro Insights
In light of Synaptogenix, Inc.'s recent announcement of a reverse stock split, investors may be keen to understand the financial health and market performance of the company. According to InvestingPro data, Synaptogenix has a market capitalization of just $3.75 million, reflecting its status as a small-cap biopharmaceutical company. The stock has experienced significant volatility, with a 1-year price total return of -77.01%, indicating a sharp decline in investor confidence over the past year.
Furthermore, the company's financial metrics reveal challenges, such as a negative P/E ratio of -0.27 for the last twelve months as of Q4 2023, which suggests that the company is not currently profitable. The negative operating income of -$8.31 million over the same period underscores the financial hurdles Synaptogenix faces, particularly as it does not pay dividends to shareholders, which can be a critical factor for income-focused investors.
InvestingPro Tips provide additional context to these figures. Synaptogenix holds more cash than debt, which is a positive sign of liquidity. However, the company is quickly burning through cash and suffers from weak gross profit margins, which could pose risks to its financial stability. Moreover, the valuation implies a poor free cash flow yield, and the company has not been profitable over the last twelve months. Despite these challenges, Synaptogenix's liquid assets exceed its short-term obligations, providing some cushion for its near-term financial operations.
For investors seeking a deeper dive into Synaptogenix's financials and strategic outlook, InvestingPro offers a comprehensive suite of tools and analytics, including additional InvestingPro Tips. Currently, there are 9 additional tips available on InvestingPro for Synaptogenix, which can be accessed at: https://www.investing.com/pro/SNPX. Take advantage of these insights with an exclusive offer: use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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