Allarity Therapeutics, Inc. (NASDAQ:ALLR), a pharmaceutical company specializing in the development of personalized cancer therapeutics, has announced a series of stockholder-approved amendments following its Annual Meeting held on Monday, September 3, 2024, as reported in a recent SEC 8-K filing.
At the Annual Meeting, stockholders approved an amendment to the Allarity Therapeutics Inc. 2021 Equity Incentive Plan, increasing the number of shares authorized for grant from approximately 2.2 million to over 10.5 million. The company believes this amendment will allow for more flexibility in attracting and retaining talent through equity compensation.
Furthermore, Allarity's stockholders voted in favor of two amendments to the company's Certificate of Incorporation. Firstly, the number of authorized shares of common stock was decreased from 750 million to 250 million. This change took effect on the morning of September 9, 2024.
Secondly, a reverse stock split was approved at a ratio of 1-for-30, effective from the morning of September 11, 2024. This reverse stock split is intended to increase the per-share trading price of the company's common stock to satisfy the minimum bid price requirement for continued listing on The Nasdaq Stock Market.
The reverse stock split will result in every 30 shares of issued and outstanding common stock being combined into one share. No fractional shares will be issued; any fractions resulting from the split will be rounded up to the next whole number. Adjustments will be made accordingly for the exercise price and number of shares available under existing stock options and the 2021 Equity Incentive Plan.
These corporate actions come as Allarity continues to focus on advancing its pipeline of drug candidates and personalized treatment options for cancer patients. The reverse stock split will not affect the par value of the common stock, and the common stock will continue to trade under the ticker symbol "ALLR" with a new CUSIP number.
The company has not provided any forward-looking statements regarding the expected benefits of these changes. The information presented is based on the SEC filing and does not include speculative commentary on the potential outcomes of the amendments.
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