SOUTH SAN FRANCISCO – Assembly Biosciences, Inc. (NASDAQ:ASMB), a biotechnology firm focused on developing antiviral therapeutics, has announced the effective date of its reverse stock split to be today. The company's common stock is expected to start trading on a split-adjusted basis when the market opens on February 12, 2024, under the unchanged ticker symbol ASMB.
In a strategic move to comply with Nasdaq's minimum bid price requirement, Assembly Biosciences will consolidate every 12 existing shares of common stock into one new share. This action will reduce the total number of outstanding shares from roughly 65.8 million to about 5.5 million, subject to adjustments for fractional shares. The reverse stock split will not alter the number of authorized shares or the par value of the company's common stock.
Equiniti Trust Company, LLC, has been appointed as the exchange agent for this corporate action. Shareholders do not need to take any active steps; those holding pre-split shares will automatically receive post-split shares. Shareholders with shares in certificate form will be contacted by Equiniti with instructions after the effective date.
The reverse stock split was approved by the company's stockholders on January 31, 2024, following which the board of directors determined the 1-for-12 ratio. Further details regarding the reverse stock split are available in the definitive proxy statement filed with the Securities and Exchange Commission on December 21, 2023.
Assembly Biosciences specializes in creating small-molecule antiviral therapeutics to combat serious viral diseases, including infections caused by herpesvirus, hepatitis B virus (HBV), and hepatitis delta virus (HDV).
This announcement is based on a press release statement and contains forward-looking statements that involve risks and uncertainties. These include the timing and ability of Assembly Biosciences to meet Nasdaq listing requirements and the potential benefits and outcomes of its clinical studies and collaborations. The company cautions that actual results may differ materially from those projected in the forward-looking statements.
InvestingPro Insights
In light of Assembly Biosciences' recent reverse stock split, investors may be evaluating the company's financial health and market performance. According to InvestingPro data, Assembly Biosciences holds a market capitalization of approximately $64.16 million USD. Despite the strategic efforts to meet Nasdaq's listing requirements, the company's P/E Ratio stands at -0.68, reflecting the challenges it faces in terms of profitability.
InvestingPro Tips suggest that while Assembly Biosciences holds more cash than debt, indicating a degree of financial stability, the company is quickly burning through its cash reserves. This is further underscored by a weak gross profit margin, as evidenced by a gross profit of -$55.18 million USD in the last twelve months as of Q3 2023. Additionally, analysts do not anticipate the company will be profitable this year, which aligns with the negative P/E Ratio.
On a more positive note, Assembly Biosciences' liquid assets exceed its short-term obligations, providing some cushion for immediate financial obligations. Moreover, the company has experienced a strong return over the last month and three months, with price total returns of 18.65% and 30.83%, respectively. It's worth noting, however, that the company does not pay a dividend to shareholders, which may be a consideration for income-focused investors.
For those seeking a deeper dive into Assembly Biosciences' financials and market performance, InvestingPro offers additional insights. There are currently more InvestingPro Tips available, which can provide a comprehensive understanding of the company's financial position and future outlook. To access these valuable insights, use coupon code SFY24 to get an additional 10% off a 2-year InvestingPro+ subscription, or SFY241 to get an additional 10% off a 1-year InvestingPro+ subscription.
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