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WASHINGTON - 60 Degrees Pharmaceuticals, Inc. (NASDAQ: SXTP; SXTPW), a developer of infectious disease treatments, announced a 1-for-5 reverse stock split of its common stock today. The adjustment is set to take place when trading opens on February 24, 2025, and aims to comply with the Nasdaq’s minimum bid price requirement. The announcement comes as the stock has experienced significant pressure, with InvestingPro data showing a 66% decline over the past six months and trading near its 52-week low of $0.45.
The reverse split was authorized by shareholders on November 6, 2024, and the decision on the ratio was made by the Board of Directors on February 10, 2025. The Certificate of Amendment was filed on February 18, 2025, to formalize the change. According to InvestingPro analysis, the company maintains a strong liquidity position with a current ratio of 5.26, though it faces challenges with rapid cash burn and weak profit margins.
This action will convert every five shares of existing common stock into one new share. Adjustments will also be made to the shares underlying outstanding equity awards, warrants, convertible notes, and the shares issued under the company’s stock incentive plans. The par value and the authorized number of shares will remain unchanged, and no fractional shares will be issued—any fractions will be rounded up to the next whole share.
The reverse stock split is intended to affect all stockholders uniformly without altering any individual’s percentage interest in the company’s equity. Equity Stock Transfer, LLC, will act as the agent for the reverse stock split. Stockholders who hold their shares electronically in book-entry form or through a broker, bank, trust, or other nominee do not need to take any action to receive post-split shares.
60 Degrees Pharmaceuticals, which was founded in 2010, specializes in developing new medicines for infectious diseases, including their lead product ARAKODA® for malaria prevention, which received FDA approval in 2018. Based in Washington D.C., the company also maintains a majority-owned subsidiary in Australia and collaborates with research organizations in the U.S., Australia, and Singapore. Despite revenue growth of 129% in the last twelve months, InvestingPro analysis reveals the company faces profitability challenges, with analysts not expecting positive earnings this year. Subscribers can access 15 additional ProTips and detailed financial metrics to better understand the company’s prospects.
The company has cautioned that there is no guarantee it will meet the minimum bid price requirement despite the reverse stock split. This press release contains forward-looking statements that involve known and unknown risks and uncertainties and should not be relied upon as guarantees of future performance.
This news is based on a press release statement from 60 Degrees Pharmaceuticals.
In other recent news, 60 Degrees Pharmaceuticals has announced a registered direct offering and concurrent private placement, which includes the sale of over one million shares and warrants, expected to generate approximately $1.043 million in gross proceeds. The proceeds are intended for general corporate purposes and working capital. The company is also expanding its clinical trial for Arakoda, a drug initially approved for malaria prevention, to include Brigham and Women’s Hospital, focusing on its potential use in treating babesiosis, a rare tick-borne disease. This trial, which also involves other institutions like Tufts Medical (TASE:BLWV) Center and Yale University, aims to enroll up to 33 patients and evaluate the drug’s efficacy and safety.
In a related development, 60 Degrees Pharmaceuticals has entered into a patent license agreement with Tufts Medical Center to further develop and commercialize Arakoda for babesiosis, receiving exclusive global commercialization rights. The FDA has already granted Orphan Drug Designation to Arakoda for babesiosis, highlighting its potential in treating this condition. H.C. Wainwright has maintained a Neutral rating on the company following these announcements, reflecting a cautious approach despite the company’s progress. The company estimates that the market for tafenoquine, the active ingredient in Arakoda, could exceed 400,000 patients by the end of its U.S. patent protection in 2035.
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