CARLSBAD, CA - Palisade Bio, Inc. (NASDAQ:PALI), a biopharmaceutical company, has announced a reverse stock split of its common stock at a ratio of 1-for-15, set to take effect after the market closes on Friday, April 5, 2024. Starting Monday, April 8, 2024, Palisade Bio's common stock will trade on The Nasdaq Capital Market under a new CUSIP number: 696389402.
The reverse stock split was approved by the company's stockholders during a special meeting held on March 25, 2024. This corporate action aims to boost the company's per-share trading price to satisfy Nasdaq’s minimum share price listing requirement. Following the reverse split, every 15 shares of issued and outstanding common stock will be converted into one share.
The company's warrants, equity-based awards, and other equity rights will also be adjusted in proportion to the reverse split by dividing the number of shares of common stock underlying these securities by 15 and multiplying the exercise or conversion price accordingly. No fractional shares will be distributed; instead, shareholders who would have received a fractional share will get a cash payment.
The reverse stock split is designed to affect all stockholders uniformly and will not change any stockholder's percentage interest in Palisade Bio's equity, except for minor changes due to the elimination of fractional shares. The par value of the common stock will remain unchanged at $0.01 per share after the reverse split.
Palisade Bio focuses on the development of novel therapeutics for autoimmune, inflammatory, and fibrotic diseases. The company believes that its targeted approach with novel therapeutics will reshape the treatment landscape.
This announcement is based on a press release statement and contains forward-looking statements subject to risks and uncertainties. Palisade Bio's future results may differ materially from those projected due to various factors, including the regulatory approval process and the company's ability to secure additional financing for its operations and product candidate development.
Additional information about the reverse stock split can be found in Palisade Bio's definitive proxy statement filed with the SEC on February 6, 2024.
InvestingPro Insights
In light of Palisade Bio's recent announcement regarding a reverse stock split, investors may find the following metrics from InvestingPro particularly relevant. The company's market capitalization stands at a modest $4.97M, reflecting the challenges small cap biopharmaceutical companies often face in the market.
Despite a Gross Profit Margin of 100% for the last twelve months as of Q4 2023, Palisade Bio reported an Operating Income Margin of -5138.0%, indicating significant operational costs relative to its revenue.
InvestingPro Data also shows that the company is not yet profitable, with a negative P/E Ratio of -0.22, suggesting that investors are currently valuing the company's earnings potential quite low. This aligns with the InvestingPro Tip that analysts do not anticipate the company will be profitable this year. The Price / Book ratio as of the last twelve months of Q4 2023 is 0.44, which could be of interest to value investors looking for assets that trade below their net asset value.
Regarding the company's stock performance, the InvestingPro Tips highlight that Palisade Bio's price has fallen significantly over the last year, with a 1 Year Price Total Return of -83.08%. The company also holds more cash than debt on its balance sheet, which can be a positive sign of financial stability, particularly in the volatile biotech sector.
For investors seeking a deeper dive into Palisade Bio's financial health and future prospects, InvestingPro offers a comprehensive list of tips and metrics. There are 10 additional InvestingPro Tips available for PALI, which could provide further insight into the company's performance and potential. Interested readers can explore these tips and make more informed decisions by using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at https://www.investing.com/pro/PALI.
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