SOUTH SAN FRANCISCO, Calif. - Senti Biosciences, Inc. (NASDAQ:SNTI), a biotechnology firm, has announced the implementation of a one-for-ten reverse stock split effective at 11:59 p.m. EDT on Monday.
The adjustment is set to reduce the number of Senti Bio's outstanding common shares from approximately 45.8 million to about 4.6 million. This strategic move is intended to address compliance issues with Nasdaq's minimum bid price requirement.
Previously, Senti Bio received notification from Nasdaq in August 2023 for not meeting the minimum bid price rule. The company was initially granted a 180-day period to regain compliance, which was extended for another 180 days until August 5, 2024. By consolidating ten shares of common stock into one, Senti Bio aims to elevate its market price above the $1.00 threshold and maintain its listing on the Nasdaq Capital Market.
No fractional shares will be issued as a result of the reverse stock split. Shareholders who would be entitled to a fraction of a share will receive a cash payment instead, based on the closing price of the company's common stock on Nasdaq on the day prior to the split, adjusted for the reverse split.
The reverse stock split was within the range authorized by Senti Bio's stockholders at the 2024 Annual Meeting. Shareholders holding stock in book-entry form or through a bank, broker, or other nominee will see their holdings automatically adjusted to reflect the reverse stock split in their accounts on or after Wednesday.
The reverse stock split is a part of Senti Bio's efforts to comply with Nasdaq's listing standards and does not affect the par value of the stock. The company, which specializes in cell and gene therapies using its Gene Circuit platform, believes that this action will help to cure the deficiencies that led to the compliance notice from Nasdaq.
This news is based on a press release statement from Senti Biosciences, Inc. and is presented without any endorsement of the company's claims.
In other recent news, Senti Biosciences, a biotechnology firm, has made significant strides in the treatment of acute myeloid leukemia (AML). The company has been awarded an $8 million grant from the California Institute for Regenerative Medicine (CIRM) to advance its Phase 1 clinical trial of SENTI-202, a cell therapy aimed at treating relapsed or refractory hematologic malignancies, including AML.
The trial is currently enrolling patients in the United States and Australia to assess the safety and efficacy of two dose levels of SENTI-202 cells. These recent developments indicate a promising direction for Senti Biosciences, as the company expects to release initial efficacy data by the end of 2024 and durability data in 2025.
In addition to the clinical trial, Senti Biosciences has reported preclinical data demonstrating the potential of SENTI-202 therapy to improve treatment outcomes for AML patients. The therapy uses engineered natural killer (NK) cells to selectively target and eliminate AML cells while preserving healthy ones.
Furthermore, Senti Bio's approach employs multi-input Gene Circuits, which include chimeric antigen receptors (CARs) controlled by logic gates, allowing for precise disease targeting. This innovative approach underpins Senti Bio's pipeline of therapies aimed at addressing various challenging liquid and solid tumor indications with improved precision and control.
InvestingPro Insights
In light of Senti Biosciences' recent decision to implement a reverse stock split, it is essential for investors to consider the company's financial health and market performance. According to InvestingPro data, Senti Bio has a market capitalization of approximately $14.41 million as of the first quarter of 2024.
The company's revenue for the last twelve months stands at $1.27 million, which indicates a significant decline of 71.46% from the previous year. Moreover, the gross profit margin for the same period is deeply negative at -2556.47%, reflecting considerable challenges in achieving profitability.
InvestingPro Tips for Senti Bio reveal several critical factors that investors should be aware of. The company is experiencing a rapid cash burn, which is a concern for its financial sustainability. Moreover, Senti Bio's stock price has been quite volatile, and analysts do not expect the company to turn a profit this year. On a positive note, the company's liquid assets do exceed its short-term obligations, which may provide some financial flexibility in the near term.
For investors seeking a more comprehensive understanding of Senti Biosciences' financial outlook, there are additional InvestingPro Tips available at https://www.investing.com/pro/SNTI. With the use of the coupon code PRONEWS24, new subscribers can get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, gaining access to valuable insights that could inform investment decisions.
It is crucial for investors to stay informed about the intricacies of a company's financial situation, especially when considering the implications of a reverse stock split like the one undertaken by Senti Biosciences. The company's current financial metrics and the additional six InvestingPro Tips not mentioned here could provide a clearer picture of its potential risks and opportunities.
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