Atara Biotherapeutics, Inc. (NASDAQ:ATRA), a biopharmaceutical company, announced today a 1-for-25 reverse stock split of its common stock, effective as of 12:01 a.m. Eastern Time. This action follows the approval from the company's stockholders at the annual meeting on June 10, 2024, to authorize the Board of Directors to implement a reverse stock split by amending its Amended and Restated Certificate of Incorporation.
The reverse stock split, which was determined by the Board to be at a ratio of one-for-twenty-five, is aimed at increasing the market price of the company's common stock. Consequently, every twenty-five shares of the issued and outstanding common stock will be automatically combined into one issued and outstanding share. The stock began trading on a split-adjusted basis today under a new CUSIP number, 046513206.
In relation to the reverse stock split, no fractional shares will be issued. Shareholders who would have been entitled to receive a fractional share will receive a cash payment instead, calculated based on the closing price of the common stock on the last trading day before the reverse stock split took effect. The same applies to holders of pre-funded warrants in lieu of fractional warrants.
The primary objective of this corporate action is to make the stock more attractive to a broader range of investors and to meet the continued listing requirements on The Nasdaq Stock Market LLC. This strategic move is a common practice among public companies seeking to optimize their stock's marketability and compliance with exchange listing standards.
The full text of the amendment to the Charter, detailing the reverse stock split, is included as an exhibit in the Current Report on Form 8-K filed with the Securities and Exchange Commission. This report is based on the company's statement in its SEC filing.
In other recent news, Atara Biotherapeutics has made significant strides in various areas. The biotechnology firm announced a 1-for-25 reverse stock split, aimed at ensuring compliance with Nasdaq's minimum bid price requirement. This measure will decrease the number of outstanding common shares from around 122.6 million to approximately 4.9 million.
Atara Biotherapeutics also reported progress on its ATA3219 therapy, an allogeneic anti-CD19 chimeric antigen receptor (CAR) T-cell therapy candidate. The preclinical data revealed the potential of ATA3219 for treating B-cell driven autoimmune diseases, showing potent B-cell depletion with a reduced inflammatory profile. The therapy is currently under investigation in a Phase 1 trial for relapsed/refractory B-cell non-Hodgkin’s lymphoma.
In addition, Atara Biotherapeutics has submitted a Biologics License Application (BLA) to the U.S. Food and Drug Administration for its product, tabelecleucel (tab-cel®). This submission could result in a $20 million milestone payment from Pierre Fabre Laboratories upon FDA acceptance, with an additional $60 million upon FDA approval. These developments represent some of the recent advancements made by Atara Biotherapeutics.
InvestingPro Insights
In light of Atara Biotherapeutics' recent reverse stock split, a deeper dive into the company's financials may offer investors a clearer picture of its current standing. According to InvestingPro data, Atara has a market capitalization of $42.72 million, which is an important factor to consider when evaluating the company's size and market value. Moreover, the revenue for the last twelve months as of Q1 2024 stands at $34.7 million, although it's worth noting there has been a significant decline of -39.63% in revenue growth during this period.
InvestingPro Tips suggest that while analysts are expecting sales growth in the current year, the company is not anticipated to be profitable within the same timeframe. Furthermore, the stock has experienced a considerable decline over the past year, with a -79.34% one-year price total return, indicating potential concerns for investors. The stock's price is currently at 90.59% of its 52-week high, and with an RSI indicating that it is in oversold territory, investors may want to watch for potential rebounds or further declines.
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