WARRINGTON, Pa. - Windtree Therapeutics, Inc. (NASDAQ: WINT), a biotechnology company engaged in the development of therapies for critical conditions, today disclosed that it will enact a 1-for-18 reverse stock split. The action, ratified by the company's Board of Directors, is aimed at augmenting the market price per share of its common stock to satisfy the Nasdaq Capital Market's minimum bid price requirement.
The reverse stock split is scheduled to take effect at the close of business on April 19, 2024, and trading on a split-adjusted basis will commence on April 22, 2024, under the existing ticker symbol "WINT" and a new CUSIP number. This consolidation will reduce the number of outstanding common shares from approximately 9.2 million to about 0.5 million.
Shareholders approved the reverse stock split during a special meeting on April 10, 2024. The adjustment will result in every eighteen shares of issued and outstanding common stock being converted into one share.
No fractional shares will be issued; instead, shareholders will receive a rounded-up whole share for any fractional share they would have received. The par value of the shares will remain unchanged at $0.001 per share.
The conversion will proportionally adjust the number of shares issuable upon the conversion of the company’s senior convertible notes, Series B Convertible Preferred Stock, and the exercise of outstanding stock options and warrants, along with their respective exercise prices.
Windtree Therapeutics emphasizes that the reverse stock split will not alter stockholders' percentage ownership interests in the company, except where rounding up to a whole share is necessary. Continental Stock Transfer & Trust Company will act as the transfer and exchange agent for the reverse stock split process.
Stockholders holding pre-split shares need not take any action to receive post-split shares. Those owning shares through brokers or other nominees will see their holdings automatically adjusted to reflect the reverse stock split.
This announcement is based on a press release statement from Windtree Therapeutics. For further details, the company has made additional information available in its Current Report on Form 8-K, filed today, as well as in its definitive proxy statement filed with the SEC on March 12, 2024.
InvestingPro Insights
In light of Windtree Therapeutics' recent announcement regarding a reverse stock split, a closer look at the company's financial health and market performance is pertinent. According to InvestingPro data, Windtree Therapeutics has a market capitalization of 3.68 million USD.
The company's financials reflect significant challenges, with an operating income adjusted for the last twelve months as of Q4 2023 standing at -17.54 million USD. Moreover, the return on assets for the same period was notably negative at -57.68%.
InvestingPro Tips for Windtree Therapeutics highlight several areas of concern for investors. The company operates with a significant debt burden and may have trouble making interest payments on its debt, as it is quickly burning through cash.
Moreover, analysts do not anticipate the company will be profitable this year, and the valuation suggests a poor free cash flow yield. These factors are crucial for shareholders to consider, especially in the context of the reverse stock split aimed at maintaining compliance with Nasdaq's minimum bid price requirement.
On a more positive note, the company has experienced a strong return over the last month, with a 1 Month Price Total Return of 17.68%. However, this should be weighed against the longer-term performance, including a 1 Year Price Total Return of -93.97%. Windtree Therapeutics does not pay a dividend, which may also influence investor decisions.
For those interested in a deeper analysis, there are additional InvestingPro Tips available for Windtree Therapeutics at https://www.investing.com/pro/WINT. Readers can use the exclusive coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking further insights that could guide investment decisions. Currently, there are 12 more InvestingPro Tips listed for Windtree Therapeutics on InvestingPro.
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