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ATLANTA - Alzamend Neuro, Inc. (NASDAQ:ALZN), a biopharmaceutical company engaged in the development of treatments for neurological disorders, has announced a one-for-nine reverse stock split of its common stock. The measure comes as the company’s stock has declined nearly 49% year-to-date, according to InvestingPro data. The split, approved by the board of directors, is set to take effect at the start of business on May 12, 2025, in the State of Delaware.
The reverse stock split is intended to ensure the company’s compliance with the Nasdaq Capital Market’s minimum bid price requirement. The decision comes as the stock trades at $0.60, having fallen significantly over the past year. As a result of the split, the number of Alzamend’s shares will be reduced, affecting all issued and outstanding shares, as well as those available for issuance under equity incentive plans. The split will also adjust the number of shares issuable upon the exercise of outstanding stock options or warrants. InvestingPro analysis suggests the stock is currently undervalued, with 16 additional key insights available to subscribers.
Alzamend’s common stock will continue to trade on the Nasdaq under the ticker symbol "ALZN" with a new CUSIP number, 02262M605. The par value of the shares will remain unchanged at $0.0001 per share. The company anticipates that the current 7,208,591 shares outstanding will consolidate to approximately 800,954 shares post-split.
The reverse stock split will be applied uniformly to all shareholders. However, no fractional shares will be issued. Shareholders who would otherwise hold a fractional share will receive a cash payment instead. Computershare Trust Company, N.A. is acting as the exchange and transfer agent for the reverse stock split and will provide instructions to stockholders regarding the cash payment for fractional shares.
Alzamend Neuro focuses on developing novel products for Alzheimer’s disease, bipolar disorder, major depressive disorder, and post-traumatic stress disorder. While the company maintains a strong liquidity position with a current ratio of 5.44 and more cash than debt on its balance sheet, InvestingPro data indicates it is quickly burning through cash. The company’s pipeline includes therapeutic drug candidates such as AL001, which delivers lithium for treatment purposes, and ALZN002, a cell-based therapeutic vaccine aimed at treating Alzheimer’s.
This announcement is based on a press release statement from Alzamend Neuro, Inc. The forward-looking statements included in the press release are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those projected. Alzamend has emphasized that it does not intend to update any forward-looking statements publicly in light of new information or future events.
In other recent news, Alzamend Neuro, Inc. announced amendments to its corporate bylaws and introduced a new series of convertible preferred stock. The changes include modifying the quorum requirement for stockholder meetings and creating the Series C Convertible Preferred Stock, which aims to enhance financial flexibility. Additionally, Alzamend Neuro has entered into an agreement to sell and exchange equity securities potentially amounting to $5 million. This deal involves exchanging Series A Convertible Preferred Stock for Series C Preferred Stock and selling additional Series C shares and warrants. The Series C Preferred Stock offers a 15% annual cash dividend and preferential rights in liquidation scenarios. Alzamend Neuro also reported the completion of a specialized head coil by Tesla Dynamic Coils BV for its upcoming Phase II clinical trials. These trials, in collaboration with Massachusetts General Hospital, will compare their product AL001 with traditional lithium carbonate in treating various neurological and psychiatric conditions. The head coil is designed for high-resolution imaging to optimize lithium dosage, potentially improving treatment protocols.
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