A reverse stock split plan set to go into effect after market close on Wednesday for NeuBase Therapeutics Inc. will bring the Pittsburgh-based biotech firm back into its listing compliance on the Nasdaq Capital Market.
The share price of NeuBase (NASDAQ: NBSE), a company that is working on developing medications designed to target and change specific parts of a person's genetic material, has been falling since February 2021 when it fetched about $11.70 per share. As of midday trading Wednesday, the company's stock recorded a trading price of about $0.15 per share, a decline of more than 98% from its price two years ago.
Following the 1-for-20 reverse stock split, NeuBase's stock will be back in compliance with Nasdaq's minimum bid price requirement of $1 per share of common stock sold on the exchange. The reverse stock split will reduce the number of issued and outstanding shares of NeuBase's stock and the company said it will not issue any fractional shares as a result of the procedure. Those who would otherwise be entitled to a fractional share will instead receive a cash payment equivalent valued at the market close price of the stock on Tuesday.
NeuBase's issued and outstanding shares of its common stock will be reduced to 1.7 million shares from its current 33.8 million shares after the reverse stock split. The company's board voted in favor of the reverse stock split ratio of 1-for-20 over a 1-for-5 ratio on June 9.
The company's gene-altering medications are made using a technology called PATrOL that combines a type of chemical called a peptide with a type of molecule called an antisense oligonucleotide along with a delivery system that helps the medication reach the right place in the body. These medications are meant to help treat diseases that are caused by problems with a person's genetics.
During its Dec. 21, 2022, earnings report culminating its most recent fiscal year, NeuBase announced it had cut 60% of its workforce as part of a cost-reduction initiative. At the time, it said its current cash and cash equivalents of $52.9 million as of Sept. 30, 2022, were enough to sufficiently fund the company's operating and capital expenditures into Q2 2024. It reported a net loss of $33.8 million during that fiscal year.
