Shuttle Pharmaceuticals Holdings, Inc. (NASDAQ:SHPH) has entered into an Amendment Agreement on Monday, altering the terms of a previous Securities Purchase Agreement with Alto Opportunity Master Fund.
The agreement includes a $600,000 payment to Alto as collateral on an outstanding $1.2 million note and defers a monthly installment due in September to March 2025. Additionally, Alto has waived any default related to the restatement of the company's financial statements for 2022 and 2023.
In a separate event, the company's stockholders approved a reverse stock split at the annual meeting held on July 31, 2024. The board decided on a one-for-eight reverse stock split, effective August 13, 2024.
This move will reduce the number of shares of common stock and adjust the number of shares issuable upon the exercise or vesting of outstanding warrants and restricted stock units. No fractional shares will be issued; stockholders will receive one full share instead of any fraction.
Shuttle Pharmaceuticals also disclosed that it plans to conduct an equity offering to fund Phase 2 clinical trials and will file the necessary registration statements following the submission of its amended financial reports for 2023 and the first quarter of 2024, as well as its second-quarter report for 2024.
This news is based on a press release statement.
In other recent news, all six board director nominees were elected for one-year terms and the appointment of Forvis Mazars LLP as the independent auditors for the fiscal year ending December 31, 2024, was ratified.
Furthermore, Shuttle Pharmaceuticals also disclosed plans to restate its financial statements for the year ended December 31, 2022, and the first quarter of 2024 due to identified accounting errors. The restatement will increase the net loss attributable to common stockholders from $3.1 million to $3.7 million for 2022, and an increase in additional paid-in capital and accumulated deficit by approximately $7.7 million each.
Amid these financial adjustments, Shuttle Pharmaceuticals announced executive team changes, including the appointment of Timothy Lorber as its new Chief Financial Officer. Concurrently, Michael Vander Hoek, the current CFO, will focus on his role as Vice President of Regulatory, aligning with the company's upcoming multi-center Phase 2 clinical trial.
InvestingPro Insights
As Shuttle Pharmaceuticals Holdings, Inc. (NASDAQ:SHPH) navigates through its recent corporate actions, including the amendment agreement with Alto Opportunity Master Fund and the reverse stock split, investors may find the following InvestingPro Insights valuable for assessing the company's financial health and stock performance.
InvestingPro Data reveals that Shuttle Pharmaceuticals currently holds a market cap of approximately $5.69 million, which is reflective of its size in the market. Despite the challenges, it's notable that the company holds more cash than debt on its balance sheet, which can be a positive sign for liquidity and financial flexibility. However, the company's P/E ratio stands at -0.92, indicating that it has not been profitable over the last twelve months. Additionally, the stock has experienced a significant price decrease, trading near its 52-week low and recording a one-year price total return of -59.76%.
InvestingPro Tips highlight that Shuttle Pharmaceuticals is quickly burning through cash and suffers from weak gross profit margins. The valuation implies a poor free cash flow yield, which could be a concern for investors looking for companies with strong cash generation potential. On a positive note, the company's liquid assets exceed its short-term obligations, suggesting it can meet its immediate financial liabilities.
For investors seeking a deeper dive into Shuttle Pharmaceuticals' financials and stock performance, additional InvestingPro Tips are available, providing a comprehensive analysis of the company's prospects. As of now, there are nine more tips listed on InvestingPro, which can be accessed for further guidance on this stock.
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