Matinas BioPharma (NYSE:MTNB) Holdings, Inc., a pharmaceutical company, announced a trading halt of its common stock on the NYSE American due to a low trading price. This halt is anticipated to last until the completion of a reverse stock split, approved by the company's Board of Directors.
The reverse stock split, set at a ratio of 1-for-50, is scheduled to take effect at 5:00 P.M. Eastern Standard Time on August 30, 2024. Trading is expected to resume on a split-adjusted basis at the market's opening on September 3, 2024, subject to NYSE American's approval.
The company's management expects that trading will recommence following the reverse stock split's implementation. However, the NYSE American may continue the trading halt or potentially delist the company's common stock if post-split share prices do not meet the exchange's minimum requirements.
This announcement is based on a recent SEC filing by Matinas BioPharma.
In other recent news, Matinas BioPharma, a clinical-stage biopharmaceutical company, has made significant strides in its development of MAT2203, an oral antifungal medication, and its lipid nano-crystal (LNC) delivery platform. The company reported a net loss of $5.7 million for Q2 2024, showing a slight improvement from the previous year's loss of $6.1 million.
Matinas BioPharma is also in the process of finalizing a global partnership for MAT2203 while advancing its ORALTO Phase 3 registration trial, expected to start between Q4 2024 and early 2025.
The company's Compassionate/Expanded Use Access Program for MAT2203 continues to yield positive clinical outcomes. Recent developments have also shed light on the potential of the LNC platform in delivering various therapeutic agents.
Furthermore, Matinas BioPharma is negotiating a global licensing agreement for MAT2203, with the ORALTO Phase 3 trial expected to start following the finalization of this partnership.
InvestingPro Insights
As Matinas BioPharma Holdings, Inc. navigates through a critical period marked by its upcoming reverse stock split, real-time data and insights from InvestingPro provide a deeper understanding of the company's financial status and stock performance. According to InvestingPro, Matinas BioPharma holds more cash than debt on its balance sheet, which is a positive sign for investors looking for financial stability in the company (InvestingPro Tip #0). Additionally, the company's stock is currently trading near its 52-week low, which could indicate a potential entry point for investors seeking to capitalize on price movements (InvestingPro Tip #10).
In terms of financial metrics, Matinas BioPharma's market capitalization stands at $23.4 million, reflecting the company's size in the marketplace (InvestingPro Data). The stock's price-to-earnings (P/E) ratio is negative at -0.91, which is not uncommon for clinical-stage biopharmaceutical companies that are not yet profitable (InvestingPro Data). Furthermore, the company's gross profit over the last twelve months as of Q2 2024 is reported to be negative $13.78 million, indicating challenges in generating a positive gross income (InvestingPro Data).
InvestingPro also lists additional tips that may be useful for investors considering Matinas BioPharma's stock, including the company's cash burn rate and the lack of profitability over the last twelve months (InvestingPro Tips #2 and #11). For those interested in a more comprehensive analysis, there are more tips available on InvestingPro's website.
These insights and data points are crucial for stakeholders and potential investors to understand the company's current financial health and stock performance as they weigh the implications of the upcoming reverse stock split and the future prospects of Matinas BioPharma.
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