Entero Therapeutics, Inc. (NASDAQ:ENTO), a pharmaceutical company based in Boca Raton, Florida, has announced the appointment of a new independent registered public accounting firm.
On Wednesday, the company's Audit Committee selected Machias Gini & O’Connell LLP (MGO) to take over the role, effective from the day before the announcement, subject to approval by the company's shareholders at the upcoming annual meeting.
This decision follows a period during which Entero Therapeutics did not consult with MGO on any accounting principles or transactions, nor were there any disagreements or reportable events that would require disclosure under SEC regulations. The company has disclosed this information in a filing with the U.S. Securities and Exchange Commission (SEC), including a letter from MGO dated today, which is attached as an exhibit to the filing.
Entero Therapeutics, previously known as First Wave BioPharma, Inc., and before that as AzurRx BioPharma (NASDAQ:ENTO), Inc., operates under the industrial classification of pharmaceutical preparations. The company has undergone several name changes in its history, with the most recent change occurring in September 2021.
The appointment of MGO comes without any reported issues from the previous fiscal years or the interim period of the current year. The company's SEC filing includes a letter from MGO to the SEC, which confirms that MGO has reviewed the company's statements and has provided any necessary clarifications or disagreements.
The change in the company's certifying accountant is a standard process that public companies periodically undergo. Entero Therapeutics' choice of MGO as its new auditor is a significant step in maintaining the company's financial transparency and integrity.
In other recent news, Entero Therapeutics has undergone significant changes in its leadership and board. The company has appointed Timothy R. Ramdeen to its board of directors, filling the vacancy left by Chaitan Khosla's resignation. Concurrently, Dr. Jack Syage has transitioned from the role of Chief Operating Officer to Chief Scientific Officer.
In the financial sphere, Entero Therapeutics has secured approximately $1.1 million in a registered direct offering and concurrent private placement, managed by Roth Capital Partners. The funds are earmarked for general corporate purposes and working capital.
In the realm of analyst coverage, H.C. Wainwright reinstated its coverage on Entero Therapeutics, shifting their rating from Under Review to Neutral following the company's recent acquisition of ImmunogenX. This acquisition has expanded Entero Therapeutics' focus on advancing gastrointestinal treatments.
InvestingPro Insights
Entero Therapeutics, Inc. (NASDAQ:ENTO) has recently made strategic changes to its financial oversight, which may be of interest to investors monitoring the company's fiscal health. According to real-time data from InvestingPro, Entero Therapeutics is currently trading at a low Price / Book multiple of 0.08, suggesting the market values the company at less than its net asset value, which could indicate the stock is undervalued or the company has underlying issues not reflected on the balance sheet.
Despite a significant return over the last week of 7.89%, the company has experienced substantial volatility, with a 1 Month Price Total Return of -37.99%, and a 3 Month Price Total Return of -83.65%. This high price volatility, as noted in one of the InvestingPro Tips, is a critical factor for investors who prefer stability or are risk-averse.
Furthermore, the company's operational performance presents challenges. With an Operating Income of -20.93M USD and a substantial negative EBITDA Growth of -185.16% over the last twelve months, these figures underscore the financial difficulties Entero Therapeutics is facing. Additionally, analysts do not anticipate the company will be profitable this year, as highlighted by another InvestingPro Tip, which could impact investor sentiment.
For those interested in a deeper analysis, InvestingPro offers additional tips and metrics on Entero Therapeutics, providing a comprehensive view of the company's financial standing and market performance. Visit https://www.investing.com/pro/ENTO for more InvestingPro Tips, where a total of 14 tips are listed, offering valuable insights for investors and stakeholders.
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