Calidi Biotherapeutics, Inc., a biotechnology company specializing in biological products, announced a 1-for-10 reverse stock split of its common stock, effective today, as part of its strategic initiatives to enhance shareholder value. The reverse stock split was authorized by the company's board of directors following approval from stockholders at a special meeting held on June 6, 2024.
As a result of the reverse stock split, every ten shares of the company's issued and outstanding common stock will be combined into one share. This action will reduce the number of shares a shareholder owns, but will not alter the value of their investment.
The par value remains unchanged at $0.0001 per share. No fractional shares will be issued; any fractional shares resulting from the split will be rounded up to the nearest whole number.
The reverse stock split also necessitates proportionate adjustments to the per-share exercise price and the number of shares available under the company’s 2023 Equity Incentive Plan, as well as the number of shares that may be purchased upon the exercise of outstanding stock options.
Calidi Biotherapeutics' common stock began trading on a split-adjusted basis on the NYSE American under the ticker symbol "CLDI" with the new CUSIP number 320703309. The company's warrants will continue trading on the NYSE American under the symbol "CLDI WS," with no change to their CUSIP.
The reverse stock split aims to increase the per-share trading price of the company's common stock, which could lead to increased interest from investors and potentially satisfy the price requirements for listing on certain stock exchanges.
This strategic move is part of Calidi Biotherapeutics' broader efforts to realign its corporate structure and market presence. The San Diego-based company, incorporated in Delaware and previously known as First Light Acquisition Group, Inc., operates in the biotechnology sector with a focus on biological products.
The information provided in this article is based on a press release statement filed with the Securities and Exchange Commission.
In other recent news, Calidi Biotherapeutics has made significant strides in its financial endeavors and board appointments. The clinical-stage biotechnology company recently secured approximately $2.1 million through the exercise of Series B and C warrants, and has set terms for a public offering aiming to raise an estimated $6.1 million. These funds are intended to support the company's clinical and pre-clinical programs, operational expenses, and working capital needs.
In addition to these financial developments, Calidi Biotherapeutics announced the appointment of Dr. George E. Peoples, a renowned cancer immunotherapy expert, to its Board of Directors. Dr. Peoples brings extensive experience in the development of cancer vaccines and has held notable positions in both clinical and military healthcare settings.
Furthermore, the company has revealed new research data at the American Association for Cancer Research Annual Meeting 2024, focusing 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.
Ladenburg Thalmann & Co, Inc. is serving as the exclusive placement agent for these transactions, with further updates on the company's clinical progress expected in the second quarter of 2024.
InvestingPro Insights
In light of Calidi Biotherapeutics' recent announcement regarding a reverse stock split, a closer look at the company's financial health and market performance through InvestingPro data may offer valuable context. Calidi's market capitalization stands at a modest $10.16 million, reflecting the scale of the company within the biotech industry.
The company's significant debt burden, as indicated by InvestingPro Tips, coupled with weak gross profit margins and a concerning cash burn rate, suggest that the reverse stock split is part of a broader strategy to stabilize its financial standing and attract investor interest.
InvestingPro Tips also highlight that Calidi's stock has experienced high price volatility and a substantial decline over the past year, with the price total return plummeting by 98.5% year over year. The company's stock trades at just 12.69% of its 52-week high, and with analysts not anticipating profitability this year, the reverse stock split could be seen as an effort to shore up investor confidence and meet exchange listing requirements.
For investors looking for deeper insights, there are additional InvestingPro Tips available, which could help in making more informed decisions about Calidi Biotherapeutics. By using the coupon code PRONEWS24, readers can get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription to access these valuable tips.
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