ATLANTA - Alzamend Neuro, Inc. (NASDAQ:ALZN), a biopharmaceutical company engaged in the development of treatments for Alzheimer's and other mental disorders, has announced a one-for-ten reverse stock split of its common stock.
The reverse stock split will take effect on July 16, 2024, at the start of trading on The Nasdaq Capital Market, under the existing ticker symbol "ALZN". This move aims to comply with Nasdaq's Minimum Bid Price Requirement and is set to maintain the company's listing on the market.
The reverse stock split will uniformly affect all issued and outstanding shares of the common stock and the number of shares available under the company's equity incentive plans. It will also adjust the shares issuable upon exercising stock options or warrants.
Despite the reduction in the number of shares, the par value of the common stock will remain at $0.0001 per share, and stockholders' percentage interests in the company's equity will not change, except for adjustments due to fractional shares. Stockholders who would end up with a fractional share will receive a cash payment instead of stock.
Computershare Trust Company, N.A. is the exchange and transfer agent managing the reverse stock split process. They will provide instructions to stockholders regarding the receipt of cash payments for fractional shares.
Alzamend Neuro's mission is to develop and market safe and effective treatments rapidly, with a pipeline that includes two novel therapeutic drug candidates. These candidates are licensed from the University of South Florida Research Foundation, Inc. and are designed to address the challenges of Alzheimer's, bipolar disorder, major depressive disorder, and post-traumatic stress disorder.
In other recent news, Alzamend Neuro, a pharmaceutical company, announced its shareholders' approval for a significant conversion of its preferred stock into common shares and warrants, potentially allowing for a purchase price of up to $25 million.
The company has also secured an extension for its Nasdaq listing and announced a financing agreement with an institutional investor for the sale of its Series A Convertible Preferred Stock. In a contrasting move, Alzamend Neuro terminated its at-the-market equity offering program to prevent potential adverse dilution for its shareholders.
Through this program, the company managed to sell a total of 1,076,821 shares of its common stock, raising approximately $1.3 million. Ascendiant Capital has adjusted its outlook on Alzamend Neuro, reducing the 12-month price target to $21 from the previous $25, while maintaining a Buy rating on the stock.
InvestingPro Insights
Alzamend Neuro, Inc. (NASDAQ:ALZN) has taken a significant step with its reverse stock split to remain compliant with Nasdaq's regulations. As investors examine the implications of this move, it's vital to consider the company's financial health and market performance. Here are some key metrics and tips from InvestingPro that provide a deeper understanding of Alzamend's current position:
InvestingPro Data:
- The company's Market Cap stands at a modest 3.15M USD, reflecting its small-cap status in the biopharmaceutical industry.
- Alzamend's Price to Earnings (P/E) Ratio is currently -0.24, indicating that the company is not profitable as of the last twelve months leading up to Q3 2024.
- The stock has experienced a significant 1 Week Price Total Return of 9.24%, showing recent volatility in its share price.
InvestingPro Tips:
- Alzamend holds more cash than debt on its balance sheet, which could provide some financial flexibility for the company's operations and development efforts.
- However, the company is quickly burning through cash, a concern that investors should monitor closely, especially in the context of its ongoing research and development expenditures.
For investors looking to dive deeper into Alzamend Neuro's financials and market performance, there are additional InvestingPro Tips available. These tips can offer valuable insights into the company's long-term viability and potential investment risks. To explore these further, visit https://www.investing.com/pro/ALZN and remember to use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription. There are 13 more tips listed in InvestingPro that could help investors make more informed decisions regarding Alzamend Neuro.
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