GAITHERSBURG, Md. - BiomX (NYSE:PHGE) Inc. (NYSE American: PHGE), a clinical-stage biotechnology company, announced today that its stockholders have given the green light to convert Series X Preferred Stock into common stock. The approval, which was detailed in a recent SEC filing, may help the company meet NYSE American equity requirements.
The conversion follows BiomX's acquisition of Adaptive Phage Therapeutics and a $50 million financing round in March 2024. Stockholders voted for the conversion of up to 256,887 Series X Preferred Stock into an equivalent number of common stock shares, totaling up to 256,887,000 shares, considering certain ownership limitations.
This stockholder approval is expected to reclassify some proceeds from the financing round as stockholders' equity, addressing a previous non-compliance notice from NYSE American regarding the minimum equity requirement of $2 million. BiomX is anticipating NYSE American's acceptance of its compliance plan.
Jonathan Solomon, CEO of BiomX, expressed satisfaction with the milestone, emphasizing the significance of the acquisition and financing in positioning BiomX as a leading phage company. He highlighted the company's focus on advancing two Phase 2 clinical candidates, with key readouts expected in the coming year.
BiomX specializes in developing phage therapies to eliminate harmful bacteria associated with chronic diseases. The company employs its BOLT platform to customize phage compositions targeting proprietary bacterial strains.
The information in this article is based on a press release statement. It should be noted that forward-looking statements involve risks and uncertainties, and actual results may differ materially.
BiomX's ability to regain compliance with listing standards and the success of its clinical development remain subject to various factors, including regulatory approvals and market conditions.
In other recent news, BiomX Inc. has seen several significant developments. The company's stockholders recently approved an increase in authorized shares from 120 million to 750 million. Furthermore, the company's 2019 Omnibus Long-Term Incentive Plan was amended and restated to provide long-term incentives to key personnel.
In addition, BiomX plans to present new data from its Phase 1b/2a study on BX004, a treatment for cystic fibrosis patients. The data includes safety and efficacy results from the randomized, double-blind, placebo-controlled study. Following positive topline results, the company plans a Phase 2b trial for the fourth quarter of 2024.
Analyst firm Laidlaw initiated coverage on BiomX with a Buy rating, citing the company's promising pipeline of phage-based therapeutics. However, Ladenburg Thalmann reduced its price target for BiomX shares following the company's latest financial results and recent corporate activities, including a merger with Adaptive Phage Therapeutics. Despite the lower price target, the firm maintained a Buy rating on the stock.
Finally, BiomX's first-quarter financials for 2024 reported earnings per share of -$0.28, which missed the consensus estimate. The company has projected that its current cash reserves will be sufficient to fund operations into the fourth quarter of 2025. These are recent developments that investors may want to consider.
InvestingPro Insights
As BiomX Inc. (NYSE American: PHGE) navigates the conversion of Series X Preferred Stock to common stock, it's important to consider the company's financial health and market performance. According to InvestingPro data, BiomX has a market capitalization of $23.42 million, reflecting its current valuation in the market. Despite the challenges, the company holds more cash than debt on its balance sheet, which is a positive sign for investors concerned about financial stability.
InvestingPro Tips suggest that BiomX is quickly burning through cash, which could be a concern given that net income is expected to drop this year. Moreover, analysts do not anticipate the company will be profitable this year, which aligns with the fact that BiomX is not profitable over the last twelve months as of Q1 2023. These factors underscore the importance of the company's strategic moves, such as the recent acquisition and financing round, in securing its financial future.
Investors should note that BiomX has experienced a large price uptick over the last six months, with a 28.05% price total return, highlighting a potential market optimism for the company's prospects. However, the stock's performance year to date also shows a significant increase of 19.82%, which could be indicative of investor confidence following the recent corporate actions.
For those looking to delve deeper into BiomX's financials and future outlook, InvestingPro offers additional insights and metrics. Readers can explore more InvestingPro Tips for BiomX by visiting https://www.investing.com/pro/PHGE, and use the coupon code UK10 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription. There are 11 additional InvestingPro Tips available, which could provide valuable guidance for investors considering this stock.
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