CHATHAM, N.J. - Tonix Pharmaceuticals Holding Corp. (NASDAQ: TNXP) announced today that it will implement a 1-for-32 reverse stock split of its outstanding common stock. The change is set to take effect as trading begins on June 10, 2024. This strategic move aims to elevate the company's per share trading price to comply with the NASDAQ Capital Market's minimum bid price rule.
The reverse stock split will consolidate every thirty-two existing shares of common stock into a single share. The adjustment will also extend to shares issuable upon the exercise of outstanding warrants and stock options. Despite the reduction in the number of shares, the authorized shares will remain unchanged, following shareholder approval on May 22, 2024.
Tonix's common stock will continue trading on the NASDAQ under the ticker symbol TNXP, albeit with a new CUSIP number, 890260847. Shareholders holding fractional shares after the split will receive rounded up shares to the nearest whole number instead of cash payments.
The company's transfer agent, VStock Transfer LLC, will guide shareholders through the certificate exchange process necessary due to the reverse stock split.
Tonix is a biopharmaceutical company engaged in the development, licensing, and commercialization of therapeutics for human diseases, with a focus on central nervous system disorders. The company has prioritized submitting a New Drug Application for Tonmya, aimed at managing fibromyalgia, with two positive Phase 3 studies already completed.
In addition to its CNS portfolio, Tonix is developing treatments for conditions such as organ transplant rejection, autoimmunity, and cancer. The company's commercial subsidiary, Tonix Medicines, markets two products for acute migraine treatment in adults.
This press release statement contains forward-looking statements that involve risks and uncertainties, including the potential for not receiving FDA approvals and the challenges of marketing, clinical development, financing, and competition. The information is current as of the date of the press release.
In other recent news, Tonix Pharmaceuticals is preparing to submit a New Drug Application for Tonmya, a potential non-opioid treatment for fibromyalgia, following positive outcomes from two Phase 3 trials. Concurrently, the company secured approximately $4.4 million in a registered direct offering to institutional investors. Tonix also announced that the FDA has granted Rare Pediatric Disease Designation to its drug candidate TNX-2900 for the treatment of Prader-Willi syndrome in children and adolescents.
Noble Capital revised its price target on Tonix Pharma (NASDAQ:TNXP) shares, significantly lowering it to $1.50 from the previous $10.00, while maintaining an Outperform rating on the stock. The firm cited the company's recent acquisitions and successful trial outcomes as pivotal in reshaping Tonix's market prospects.
Furthermore, Tonix selected two contract manufacturing organizations, including Almac Pharma Services, to prepare for the potential commercial launch of Tonmya. These developments underscore the company's ongoing efforts to advance its portfolio of treatments for central nervous system disorders and other diseases.
InvestingPro Insights
In light of Tonix Pharmaceuticals' recent announcement regarding a reverse stock split, investors may be seeking additional context on the company's financial health and market performance. According to data from InvestingPro, Tonix Pharmaceuticals has a market capitalization of $12.24 million as of the last twelve months up to Q1 2024. The company's price-to-book ratio during the same period stands at a modest 0.13, suggesting that the market values the company at just over a tenth of its book value.
It is notable that Tonix Pharmaceuticals has experienced significant volatility and a downward trend in its stock price, with a one-year price total return of -92.25% as of the same timeframe. This aligns with an InvestingPro Tip indicating that the stock has taken a substantial hit over the last week, month, and six months, reflecting a broader trend of decline in the company's market valuation.
InvestingPro Tips also reveal that analysts have recently revised their earnings upwards for the upcoming period, despite concerns about the company's profitability. Analysts do not anticipate that Tonix will be profitable this year, and the company has not been profitable over the last twelve months. Additionally, the company is quickly burning through cash, which could be a factor for investors to consider in light of the reverse stock split and the company's future capital requirements.
For investors looking for a deeper analysis, there are additional InvestingPro Tips available that could provide further insights into Tonix Pharmaceuticals' financials and market performance. By using coupon code PRONEWS24, readers can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription to access these valuable tips and metrics. With the reverse stock split approaching, staying informed on the latest data and expert opinions could be crucial for making educated investment decisions.
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