TORONTO - Aeterna Zentaris Inc. (NASDAQ: NASDAQ:AEZS) (TSX: AEZS), a specialty biopharmaceutical company, has announced the implementation of a share consolidation, commonly known as a reverse stock split, of its common shares.
The consolidation, which was approved by shareholders on March 12, 2024, will result in a reduction of the number of issued and outstanding common shares from approximately 4.86 million to about 1.21 million, at a ratio of one post-consolidation share for every four pre-consolidation shares.
The company's common shares are expected to begin trading on the Toronto Stock Exchange and the Nasdaq Capital Market on a post-consolidation basis around the opening of trading on May 3, 2024. This move is part of a broader merger transaction with Ceapro Inc., which is anticipated to close in the second quarter of 2024, pending all required approvals and conditions.
Registered holders of common shares will receive a letter of transmittal from the company's transfer agent, Computershare Trust Company of Canada, with instructions on how to exchange their pre-consolidation share certificates. The new CUSIP number for the common shares following the consolidation is 007975600, with a new ISIN number of CA00079756007.
This share consolidation is a strategic step in the process of Aeterna Zentaris' planned merger with Ceapro Inc. The exchange ratio for Ceapro shareholders will be adjusted accordingly, as they will receive post-consolidation common shares of Aeterna Zentaris.
Aeterna Zentaris specializes in developing and commercializing pharmaceutical and diagnostic products, with a focus on unmet medical needs. Their lead product, macimorelin, is the first and only oral test approved by the U.S. FDA and European Commission for diagnosing adult growth hormone deficiency.
The information provided in this article is based on a press release statement from Aeterna Zentaris.
InvestingPro Insights
In light of Aeterna Zentaris Inc.'s recent announcement regarding its share consolidation and upcoming merger with Ceapro Inc., interested investors and stakeholders are keenly observing the company's financial health and stock performance. Here are some insights based on real-time data from InvestingPro and InvestingPro Tips that may provide a deeper understanding of the company's current position:
The market capitalization of Aeterna Zentaris stands at a modest 9.17 million USD, reflecting the size of the company within the biopharmaceutical industry. Despite a challenging financial performance, with a negative P/E ratio of -0.54 for the last twelve months as of Q4 2023, the company holds more cash than debt on its balance sheet, which is a positive sign of liquidity. This is complemented by the fact that their liquid assets exceed short-term obligations, providing some cushion for short-term financial commitments.
Investors should note the stock's volatility, as it has experienced significant price movements, with a large uptick of 34.49% over the last six months. However, the one-year price total return stands at -37.1%, indicating that the stock has faced longer-term challenges. Analysts are optimistic, predicting that Aeterna Zentaris will be profitable this year, which could be a turning point for the company.
InvestingPro Tips suggest that while the company is quickly burning through cash and has not been profitable over the last twelve months, there is an expectation of net income growth this year. These insights, along with 10 additional tips available on InvestingPro, could help investors make more informed decisions regarding Aeterna Zentaris' stock.
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