SAN DIEGO - Calidi Biotherapeutics Inc. (NYSE American: CLDI), a clinical-stage biotechnology company, has announced a reverse stock split of its common stock at a 1-for-10 ratio, to take effect on July 15, 2024.
The decision, approved by the company's Board of Directors following authorization from stockholders, aims to consolidate shares and is anticipated to begin trading on a split-adjusted basis at the start of the market on the effective date.
The reverse stock split was ratified at a Special Meeting of Stockholders on June 6, 2024, with the exact ratio determined by the Board of Directors on July 1, 2024. As a result of the reverse stock split, the total number of issued and outstanding common stock will be reduced to approximately one-tenth of its pre-split amount. No fractional shares will be issued; instead, stockholders will receive a rounded-up whole share for any fractional shares they would have held.
The company has also outlined adjustments to the exercise prices and the number of shares underlying its outstanding equity awards, as well as to the number of shares issuable under its equity incentive and employee stock purchase plans.
These adjustments will be in accordance with the 1-for-10 reverse stock split ratio. Similarly, proportional adjustments will be made to Calidi's outstanding publicly-traded and private warrants.
Stockholders with shares held in book-entry form or through brokerage accounts will see their holdings automatically adjusted. Those holding shares in certificate form will receive instructions from Computershare on the necessary procedures post-split.
Calidi Biotherapeutics focuses on developing targeted virotherapies for cancer treatment, utilizing stem cell-based platforms to enhance the efficacy and safety of oncolytic viruses. The company is based in San Diego, California.
This press release contains forward-looking statements regarding the reverse stock split and the company's clinical development plans. These statements are subject to various risks and uncertainties, and actual results may differ materially. The company cautions that early clinical trial results may not be indicative of final outcomes and that its therapeutic candidates are subject to regulatory approval processes.
The information in this article is based on a press release statement from Calidi Biotherapeutics.
In other recent news, Calidi Biotherapeutics has been making significant strides in both its financial and research sectors. The clinical-stage biotechnology company has successfully secured approximately $2.1 million through the exercise of Series B and C warrants.
In a parallel development, the firm has also announced the terms for a public offering, aiming to raise an estimated $6.1 million. These funds will be utilized to support the company's clinical and pre-clinical programs, operational expenses, and working capital needs.
Calidi Biotherapeutics has also made crucial progress on the research front, revealing new data at the American Association for Cancer Research Annual Meeting 2024. The study, conducted in collaboration with City of Hope, focuses on the role of stem cells in enhancing the effectiveness of antitumor virotherapies. This research supports the potential of Calidi's CLD-101 and CLD-201 platforms as universal treatments for solid tumors.
In addition, Calidi Biotherapeutics has expanded its board with the appointment of Dr. George Peoples, a renowned cancer immunotherapy expert, starting July 1, 2024. Dr. Peoples brings a wealth of experience in the development of cancer vaccines and has held notable positions in both clinical and military healthcare settings.
Ladenburg Thalmann & Co, Inc. is serving as the exclusive placement agent for these transactions. Further updates on the company's clinical progress are anticipated in the second quarter of 2024.
InvestingPro Insights
Calidi Biotherapeutics Inc.'s decision to implement a reverse stock split comes at a time when the company's financial metrics reflect significant challenges. The reverse stock split is often seen as a move to bolster the stock price and maintain compliance with exchange listing requirements. Here are key insights from InvestingPro that provide a deeper understanding of the company's financial health:
InvestingPro Tips reveal that Calidi Biotherapeutics operates with a significant debt burden and is quickly burning through cash, which may raise concerns about its financial sustainability. Additionally, the company has been experiencing high price volatility, which could be indicative of investor uncertainty regarding the company's future prospects.
InvestingPro Data shows that Calidi Biotherapeutics has a market cap of $12.45 million USD, with a negative price-to-earnings (P/E) ratio of -0.43, reflecting investor skepticism about future earnings. The company's return on assets stands at a concerning -382.78%, and the stock has seen a dramatic 1-year price total return of -98.16%, which underscores the significant downward pressure on the stock price.
In light of these metrics, investors should be aware that the reverse stock split is a strategic move that may not address the underlying financial issues faced by the company. For those considering investment in Calidi Biotherapeutics, or seeking to understand the full scope of the company's financial situation, there are additional InvestingPro Tips available at https://www.investing.com/pro/CLDI. By using the coupon code PRONEWS24, users can get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, accessing a comprehensive list of 14 InvestingPro Tips that could further inform investment decisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.