Phio Pharmaceuticals Corp. (NASDAQ:PHIO), a biotechnology company, announced on Monday that it has successfully regained compliance with the Nasdaq's minimum bid price requirement. The compliance notice from The Nasdaq Stock Market LLC arrived after the company executed a one-for-nine reverse stock split on July 5, 2024.
The reverse split was part of Phio Pharmaceuticals' strategy to maintain its listing on The Nasdaq Capital Market. Nasdaq Listing Rule 5550(a)(2) requires listed securities to maintain a minimum bid price of $1.00 over a consecutive 30 trading-day period. Phio's stock had been trading below this threshold, which prompted the reverse split action.
The company, which specializes in pharmaceutical preparations, had previously disclosed the details of the reverse split in a Current Report on Form 8-K filed on July 2, 2024. The reverse split effectively reduced the number of outstanding shares of common stock, thereby increasing the per-share trading price to meet the Nasdaq's requirement.
In other recent news, Phio Pharmaceuticals disclosed the termination of its share purchase agreement with Triton Funds LP, which previously offered Triton the choice to acquire up to 18.8% of Phio's common stock. The company has not yet revealed any details regarding the termination or its future financing plans. Simultaneously, the biotech firm secured a patent in South Korea for its compound targeting skin aging and disorders, a part of its INTASYL siRNA gene silencing technology.
In the field of immuno-oncology, Phio has progressed to the next dosage concentration in its Phase 1b clinical trial of PH-762, following positive safety data from the initial cohort. Alongside these developments, Phio secured an investment from Triton Funds, leading to the purchase of approximately 18.8% of its common shares, a transaction expected to generate gross proceeds of up to $621,000.
Lastly, Phio presented new preclinical data on its INTASYL Compound PH-905 at the 10th Immunotherapy of Cancer Conference in Munich, Germany, showcasing its potential to enhance the effectiveness of natural killer cells in fighting cancer. These are among the recent developments in Phio's ongoing endeavors.
InvestingPro Insights
In light of Phio Pharmaceuticals' recent strategic moves to maintain Nasdaq compliance, investors may find the latest data and insights from InvestingPro particularly useful. According to real-time metrics, Phio Pharmaceuticals holds a market capitalization of approximately $1.85 million. The company's Price / Book ratio as of the last twelve months leading up to Q1 2024 stands at 0.33, suggesting that the stock may be undervalued relative to its assets. Additionally, despite the challenges, analysts have a fair value estimate on the stock at $36, which is significantly higher than the previous close price of $3.77.
InvestingPro Tips indicate that Phio Pharmaceuticals currently holds more cash than debt, which is a positive sign for financial stability. Furthermore, the company's net income is expected to grow this year. For investors seeking actionable insights and more in-depth analysis, InvestingPro offers additional tips on Phio Pharmaceuticals. Interested investors can take advantage of these insights and potentially benefit from the current market position of Phio Pharmaceuticals. Remember to use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, which includes access to a total of 17 InvestingPro Tips for Phio Pharmaceuticals, providing a comprehensive overview of the company's financial health and stock performance.
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