FTSE 100: Index falls as earnings results weigh; pound below $1.33, Bodycote soars
D. Boral (OTC:BOALY) Capital downgraded Artelo Biosciences (NASDAQ:ARTL) from Buy to Hold ahead of the company’s planned reverse stock split. The rating change comes as Artelo prepares for a 6-for-1 reverse split scheduled to take effect on Friday, June 13, 2025. According to InvestingPro data, the micro-cap company, currently valued at $3.58 million, holds more cash than debt on its balance sheet, though it faces profitability challenges.
The corporate action was approved by Artelo’s Board of Directors on May 20, 2025, as part of the company’s strategy to regain compliance with Nasdaq’s minimum bid requirement of $1.00 per share. Following the split, Artelo will have approximately 546,667 shares outstanding. The stock has shown mixed performance, with a 6.6% gain year-to-date despite a -17.82% return over the past year.
D. Boral Capital removed its price target for Artelo stock in accordance with its policy regarding companies undergoing reverse splits. The firm noted that all outstanding warrants and derivative securities will be adjusted to reflect the new share structure, while shareholder ownership percentages will remain unchanged.
The research firm expressed caution about the move, stating: "While the reverse split is a necessary procedural move to maintain listing, we typically view such actions with caution given the historic trend of post-split share price pressure."
D. Boral Capital indicated it sees "limited near-term upside until the shares find technical and investor support at a new base level," influencing its decision to downgrade the stock to Hold status during this transition period. InvestingPro analysis reveals several additional insights about Artelo’s financial health and future prospects, with 5 more exclusive ProTips available to subscribers.
In other recent news, Artelo Biosciences announced a 6-for-1 reverse stock split, which will take effect on June 13, 2025. This decision, approved by the company’s board of directors, aims to increase the per-share price to meet Nasdaq’s minimum bid price requirement for continued listing. Following the split, Artelo’s common stock will continue trading under the same ticker symbol with a new CUSIP number. The reverse split will adjust all outstanding shares and derivatives automatically, leaving shareholders’ proportional ownership unchanged. Additionally, Artelo Biosciences presented promising data on its Fatty Acid Binding Protein (FABP) inhibitors at the British Pain Conference. The study highlighted the analgesic potential of ART26.12, a lead FABP5 inhibitor, for osteoarthritis pain, showing effectiveness comparable to naproxen with fewer side effects. The first Phase 1 trial results for ART26.12 are anticipated in the second quarter of 2025, with initial focus on chemotherapy-induced peripheral neuropathy. These developments reflect Artelo’s ongoing efforts to advance its therapeutic candidates through clinical trials.
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