South San Francisco-based Senti Biosciences, Inc. has implemented a reverse stock split of its common stock, consolidating every ten shares into one. The move, which took effect as of 5:00 p.m. Eastern Time on Wednesday, was previously approved by stockholders at the Annual Meeting on July 10, 2024, following the recommendation of the Board of Directors.
The reverse stock split was part of an amendment to the company's Second Amended and Restated Certificate of Incorporation. This strategic step was described in the definitive proxy statement filed on May 29, 2024, and aims to reclassify the company’s issued and outstanding common stock, par value $0.0001 per share. As a result, the total number of shares each stockholder owns will be reduced by a factor of ten, although the value of each share will proportionally increase, subject to the treatment of fractional shares.
Stockholders who would otherwise hold a fraction of a share after the consolidation will receive a cash payment instead, calculated based on the closing sales price of the common stock on The Nasdaq Capital Market on the day before the reverse stock split became effective.
The company’s common stock will continue trading on The Nasdaq Capital Market with the ticker "SNTI", starting on a split-adjusted basis from July 18, 2024. The new CUSIP number for the post-reverse stock split shares is 81726A209.
This corporate action will also result in proportional adjustments to the exercise prices and the number of shares underlying Senti Biosciences' outstanding equity awards. The authorized shares of Common Stock or the par value will not be affected by this amendment.
This information is based on a press release statement and the company's recent SEC filing. The company cautions that forward-looking statements regarding the expected effects of the reverse stock split involve risks and uncertainties, and investors should not place undue reliance on them.
In other recent news, Senti Biosciences has made notable strides in the treatment of acute myeloid leukemia (AML) through its Phase 1 clinical trial of SENTI-202. The biotechnology firm was granted an $8 million award from the California Institute for Regenerative Medicine (CIRM) to support this endeavor. Patient dosing for the trial is expected to commence in the second quarter of 2024, with initial efficacy and durability data anticipated by the end of 2024 and 2025, respectively.
Also, Senti Biosciences has revised its equity facility agreement with Chardan Capital Markets LLC. The updated terms of their existing $50 million equity facility aim to provide the company with greater flexibility in managing its equity facility. The agreement allows Senti Biosciences to sell shares of its common stock at a par value of $0.0001 per share under the updated terms.
These are among the recent developments for the company, which continues to make advancements in the field of biological products. The company's approach to treating AML involves the use of engineered natural killer (NK) cells to selectively target and eliminate AML cells while preserving healthy ones, a potential breakthrough in AML treatment. Senti Biosciences' preclinical data, published in the journal Cell Reports, supports these efforts, showcasing the potential of SENTI-202 therapy to improve treatment outcomes for AML patients.
InvestingPro Insights
In light of Senti Biosciences' recent reverse stock split, a closer look at the company's financial health and market performance provides additional context for investors. According to real-time data from InvestingPro, the company's market capitalization stands at a modest $13.07 million. This is reflective of a challenging financial situation, as indicated by a negative P/E ratio of -0.24 for the last twelve months as of Q1 2024. Furthermore, the company's revenue has seen a significant decline, dropping by 71.46% in the same period.
InvestingPro Tips suggest that Senti Biosciences is grappling with weak gross profit margins and is not expected to be profitable this year. Additionally, the company's stock price has been quite volatile, which may be a concern for risk-averse investors. On a more positive note, the company's liquid assets do exceed its short-term obligations, providing some financial flexibility.
For those considering a deeper analysis, there are additional InvestingPro Tips available that could provide more comprehensive insights into Senti Biosciences' financial health and future prospects. Interested readers can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, offering access to a total of 10 InvestingPro Tips for Senti Biosciences at https://www.investing.com/pro/SNTI.
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