In a recent move to adjust its capital structure, Matinas BioPharma (NYSE:MTNB) Holdings, Inc. (NYSE American:MTNB) announced a reverse stock split and a reduction in authorized shares. Effective August 30, 2024, the pharmaceutical company executed a one-for-fifty reverse stock split of its common stock and decreased its total authorized shares from 500 million to 250 million.
The reverse stock split consolidated every fifty shares of existing common stock into one share. This action did not affect any stockholder's percentage interest in the company, except for adjustments due to rounding fractional shares, which were rounded up to the nearest whole share. The par value remained unchanged, while the CUSIP number for the common stock was updated to 576810 303.
Trading on the NYSE American is expected to resume on Tuesday, September 3, 2024, on a split-adjusted basis, pending the exchange's approval. Trading was previously halted on August 27, 2024, due to the low share price. The exchange may extend the halt or even delist the stock if post-split prices do not meet certain guidelines.
Adjustments were also made to the terms of outstanding stock options, restricted stock units, and warrants to align with the reverse stock split. The decision to amend the Certificate of Incorporation, which included the reverse stock split and authorized share reduction, was approved by the company's stockholders during the annual meeting on November 1, 2023, and subsequently by the Board of Directors on August 20, 2024.
This strategic step by Matinas BioPharma is detailed in the company's recent SEC filing, which provides a comprehensive view of the changes to its capital structure.
In other recent news, Matinas BioPharma 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. The pharmaceutical company is also finalizing a global partnership for its antifungal medication, MAT2203.
The company's Compassionate/Expanded Use Access Program for MAT2203 continues to yield positive clinical outcomes, and recent developments have shed light on the potential of its lipid nano-crystal (LNC) delivery platform.
In addition, Matinas BioPharma announced a trading halt of its common stock on the NYSE American due to a low trading price. The 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 soon, after which trading is expected to resume on a split-adjusted basis, subject to NYSE American's approval.
These are among the recent developments for Matinas BioPharma, which is also advancing its ORALTO Phase 3 registration trial for MAT2203. The trial is expected to start following the finalization of the global partnership. The company's management expects that trading will recommence following the reverse stock split's implementation.
InvestingPro Insights
As Matinas BioPharma Holdings, Inc. (NYSE American:MTNB) navigates through its capital restructuring process, it's important to consider the company's financial health and market sentiment. According to InvestingPro data, the company currently holds a market capitalization of $23.4 million.
The data also highlights some challenges, with a negative P/E ratio of -0.02 and a concerning Return on Assets of -78.48% for the last twelve months as of Q2 2024. Despite these figures, an InvestingPro Tip points out that Matinas BioPharma holds more cash than debt on its balance sheet, which could provide some financial flexibility.
Investors may also take note of the stock's recent performance, with a significant price decline over the past six months, as indicated by a 67.97% drop in the 6 Month Price Total Return. This volatility is reflected in another InvestingPro Tip, which suggests that the stock is currently in oversold territory. While the company's stock price has been volatile, the InvestingPro platform lists additional tips that could help investors make more informed decisions, including insights into the company's cash burn rate and gross profit margins.
For those interested in a deeper dive into Matinas BioPharma's financials and market outlook, more InvestingPro Tips are available on the platform, providing a comprehensive analysis that could be crucial for making investment decisions in the context of the company's recent reverse stock split and share reduction.
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