ENDRA Life Sciences Inc. (NASDAQ:NDRA), a company specializing in electromedical and electrotherapeutic apparatus, has announced a reverse stock split of its common stock, which will take effect on Tuesday.
The decision follows a special meeting of stockholders on October 28, 2024, where the amendment to the company's Certificate of Incorporation was approved, authorizing the Board of Directors to determine the ratio for the reverse stock split.
The Board has set the reverse stock split at a ratio of 1/35, meaning each issued and outstanding share of common stock will be reclassified and converted into a fraction of a share. The reverse stock split is scheduled to be effective from 12:01 a.m. Eastern Time on November 7, 2024. As a result, the common stock will begin trading on a split-adjusted basis under a new CUSIP number, 29273B 500.
This corporate action is aimed at modifying the rights of the security holders of ENDRA Life Sciences. The company has filed an amendment with the Secretary of State of the State of Delaware to effectuate the reverse stock split. This amendment is detailed in Exhibit 3.1 of the company's recent 8-K filing with the Securities and Exchange Commission (SEC).
The information in this article is based on a press release statement from ENDRA Life Sciences Inc. and its filings with the SEC.
In other recent news, ENDRA Life Sciences has been granted an extension by the Nasdaq Hearings Panel to meet the minimum bid price requirement for continued listing on the Nasdaq Capital Market. The company has until November 20, 2024, to achieve this.
Furthermore, a significant majority of the Series B Warrants issued during the June 2024 public offering have been exercised, leading to the issuance of 15,831,864 new shares of common stock.
To enhance its performance, six key changes have been made, including strengthening the management team with the addition of Richard Jacroux as CFO and Ziad Rouag as Head of Regulatory and Clinical Affairs.
ENDRA Life Sciences is also refining its FDA strategies and has outlined its focus on pivotal clinical studies for the TAEUS liver device, aiming for completion by mid-2025. These recent developments reflect the company's commitment to its strategic goals and its efforts to meet regulatory requirements.
InvestingPro Insights
ENDRA Life Sciences Inc.'s decision to implement a reverse stock split comes at a critical time for the company, as reflected in recent InvestingPro data. The company's market capitalization stands at a modest $4.78 million, with its stock price at $0.26 as of the previous close. This low valuation aligns with two key InvestingPro Tips: the stock has taken a significant hit over the last week, with a 1-week price total return of -21.39%, and it has fallen dramatically over the past year, showing a 1-year price total return of -99.46%.
The reverse split strategy appears to be a response to these challenging market conditions. However, investors should note that ENDRA Life Sciences faces fundamental financial challenges. An InvestingPro Tip indicates that the company is quickly burning through cash, which is corroborated by its negative operating income of -$9.6 million in the last twelve months. Additionally, analysts do not anticipate the company will be profitable this year, suggesting ongoing financial pressures.
On a positive note, ENDRA Life Sciences holds more cash than debt on its balance sheet, providing some financial flexibility as it navigates this transition. The company's stock has also shown a strong return over the last month, with a 1-month price total return of 24.71%, potentially indicating some investor optimism about the reverse split strategy.
For readers interested in a more comprehensive analysis, InvestingPro offers 15 additional tips for ENDRA Life Sciences, providing a deeper understanding of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.