DENVER - SeaStar Medical Holding Corporation (NASDAQ:ICU), a developer of medical devices aimed at reducing hyperinflammation's impact on organs, has announced a reverse stock split. The 25-for-1 reverse split is set to take effect after market close on June 7, 2024, with trading on a split-adjusted basis on the Nasdaq Capital Market starting on June 10, 2024.
The reverse stock split was authorized by shareholder approval at the company's Special Meeting on September 6, 2023. This corporate move aims to increase the market price of SeaStar Medical's common stock to comply with Nasdaq's minimum bid price rule. The company's stock will continue trading under the ticker symbol ICU but will have a new CUSIP number, 81256L203.
In practical terms, the reverse stock split will convert every 25 shares of the issued and outstanding common stock into one share. Shareholders entitled to fractional shares as a result of the split will receive one whole share instead. This action will proportionally reduce the number of shares available for conversion from preferred stock and adjust the exercise prices of stock options and warrants.
Shareholders of record will be informed about changes to their share ownership by the transfer agent, Continental Stock Transfer and Trust Company. Investors holding shares through banks or brokers will see their positions automatically adjusted and are not required to take any additional action, although they should be aware of their broker's specific processes.
For more details, stakeholders are advised to refer to the company's upcoming Form 8-K filing with the Securities and Exchange Commission.
SeaStar Medical focuses on developing extracorporeal therapies to mitigate severe inflammation effects on vital organs. The company is working on cell-directed therapies targeting cells that drive systemic inflammation, which can cause tissue damage and unbalanced immune responses.
This article is based on a press release statement from SeaStar Medical.
In other recent news, SeaStar Medical has announced it will restate its financial statements for the fiscal year ended December 31, 2022, and for interim periods through September 30, 2023. This restatement, related to the accounting treatment of certain warrants and a prepaid forward purchase arrangement, is expected to be non-material to the company's cash position or business operations.
SeaStar Medical is also making strides in its clinical developments, continuing its pivotal adult acute kidney injury (AKI) study and planning to treat the first critically ill child with AKI and sepsis using its Quelimmune™ pediatric therapeutic device.
The company has been granted a Humanitarian Device Exemption (HDE) Approval Order by the FDA for this device, which could potentially benefit approximately 4,000 children annually. In addition, SeaStar Medical's NEUTRALIZE-AKI pivotal trial is progressing, with 21 subjects enrolled across five clinical sites.
An interim analysis is expected after reaching the 90-day primary endpoint with 100 enrolled subjects, projected for the second half of 2024. These are among the recent developments for SeaStar Medical.
InvestingPro Insights
As SeaStar Medical Holding Corporation (NASDAQ:ICU) navigates through a significant corporate restructuring with its upcoming reverse stock split, investors are closely monitoring the company's financial health and market performance. According to InvestingPro, ICU's market cap sits at a modest 26.7 million USD. Despite the strategic move to boost stock prices, the company's P/E ratio remains negative at -0.39, reflecting challenges in profitability over the last twelve months.
InvestingPro Tips indicate that ICU suffers from weak gross profit margins and has not been profitable over the past year. Moreover, the stock price has shown a tendency to move inversely to the market, which could be a point of concern for investors seeking stability. ICU's short-term obligations surpass its liquid assets, potentially indicating liquidity issues that need to be addressed.
With the company's stock price previously closing at 0.35 USD and experiencing a three-month total price return of -47.58%, the reverse stock split could be a pivotal moment for ICU. It is worth noting that there are 8 additional InvestingPro Tips available, offering deeper insights into SeaStar Medical's financial standing and market trends. For those interested in gaining full access to these tips, InvestingPro offers a special discount using the coupon code PRONEWS24 for an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
Investors and stakeholders are encouraged to stay informed on the company's progress, especially with the next earnings date slated for August 13, 2024. As SeaStar Medical continues to develop its medical devices and therapies, the financial and stock performance will be critical to watch in the aftermath of the reverse stock split.
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