BOSTON - Pieris Pharmaceuticals, Inc. (NASDAQ:PIRS), a biotechnology company, has declared a 1-for-80 reverse stock split of its common stock, scheduled to take effect after the market closes on April 22, 2024. The company's common stock will trade on a split-adjusted basis on The Nasdaq Capital Market under the ticker "PIRS" starting April 23, 2024.
The reverse stock split is being implemented to comply with Nasdaq's minimum bid price requirement of $1.00 per share for continued listing. By reducing the number of shares from approximately 98.9 million to 1.2 million, the move aims to increase the per-share trading price of the company's common stock.
All shareholders will be affected equally by the reverse stock split, and it will not change their percentage ownership in the company, except in cases where fractional shares would result. In such instances, shareholders will receive one whole share of common stock instead of a fraction.
The total number of authorized shares will also be proportionally decreased from 300 million to 3.75 million shares of common stock. The reverse stock split will proportionately impact the number of shares available under the company's equity incentive plans and the exercise prices of outstanding stock options and warrants, as well as the conversion prices or ratios of the preferred stock.
Computershare Trust Company, N.A. is set to act as the exchange agent for the reverse stock split. Stockholders holding physical certificates will receive instructions on exchanging their pre-split shares for book-entry form shares. Those holding shares in street name will be informed of the process by their respective brokers.
This strategic move comes as Pieris Pharmaceuticals continues to potentially receive development, regulatory, and sales-based milestones from its immuno-oncology assets, which are partnered with various pharmaceutical companies. The company is also exploring the sale of its preclinical and clinical assets.
The information in this article is based on a press release statement from Pieris Pharmaceuticals, Inc.
InvestingPro Insights
As Pieris Pharmaceuticals, Inc. (NASDAQ:PIRS) undergoes a significant structural change with its 1-for-80 reverse stock split, investors and potential shareholders are keenly observing the company's financial health and market performance. Here are some key insights based on the latest data from InvestingPro:
InvestingPro Data highlights a market capitalization of $14.35 million, which is relatively small in the biotech industry, suggesting a higher risk and potential for volatility. The company's P/E ratio stands at -0.54, reflecting that it is not currently profitable. Additionally, the gross profit margin for the last twelve months as of Q4 2023 is reported at a low 2.36%, indicating challenges in maintaining profitability.
Amid these financial metrics, two InvestingPro Tips are particularly relevant:
1. Pieris Pharmaceuticals holds more cash than debt on its balance sheet, which is a positive sign of financial stability and may provide some cushion against market uncertainties or operational needs.
2. Analysts anticipate a sales decline in the current year, which investors should consider as they evaluate the potential impact on the company's future performance.
These InvestingPro Tips, along with many others, are available on InvestingPro's platform. For those interested in a deeper analysis, there are 12 additional InvestingPro Tips for Pieris Pharmaceuticals that can provide further guidance. To explore these valuable insights and make informed investment decisions, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
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