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STAMFORD, Conn. - Cara Therapeutics, Inc. (NASDAQ:CARA), soon to be known as Tvardi Therapeutics, Inc., has announced a 1-for-3 reverse stock split of its outstanding common stock, approved by its Board of Directors and stockholders. The reverse stock split is scheduled to take effect at the close of business on Tuesday, with trading on an adjusted basis starting Wednesday, April 16, 2025, under the new ticker symbol TVRD. According to InvestingPro data, the company currently has a market capitalization of $25.89 million, with its stock trading at $5.73.
The reverse stock split will consolidate every three existing shares of common stock into one share, reducing the number of shares from approximately 4.6 million to about 1.5 million. This change will occur without altering the par value per share. The authorized number of shares will remain unchanged, and stockholders who would hold a fractional share will receive a cash payment instead. InvestingPro analysis reveals the company is currently burning through cash, with negative EBITDA of $55.59 million in the last twelve months.
In conjunction with the reverse stock split, adjustments will be made to the exercise or conversion prices of outstanding stock options and to the number of shares issuable under the company’s equity incentive plans. Following the merger with Tvard Therapeutics, Inc., the combined entity is expected to have approximately 9.4 million outstanding shares of common stock.
Tvardi Therapeutics, Inc. is a clinical-stage biopharmaceutical company focused on developing oral small molecule therapies targeting STAT3 for the treatment of fibrosis-driven diseases. The company is currently conducting Phase 2 clinical trials in idiopathic pulmonary fibrosis and hepatocellular carcinoma. Financial metrics from InvestingPro indicate significant challenges, with revenue declining by 65.96% and the company maintaining a strong liquidity position with a current ratio of 11.03. For deeper insights into CARA’s financial health and future prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
Cara Therapeutics has been known for its development of an IV formulation of difelikefalin, approved for treating pruritus associated with advanced kidney disease in adults undergoing hemodialysis in the United States and other countries.
The forward-looking statements in the press release reflect the company’s expectations regarding the completion and effects of the proposed merger and reverse stock split. They are subject to risks and uncertainties that could cause actual results to differ materially. These include risks related to the merger, potential changes or circumstances that could affect the merger agreement, and the company’s continued operation as a public entity.
The information in this article is based on a press release statement from Cara Therapeutics, Inc.
In other recent news, Cara Therapeutics announced the approval of a merger with Tvardi Therapeutics, which will result in Tvardi becoming a wholly-owned subsidiary. This merger was supported by a significant majority of stockholders and includes executive compensation arrangements and employee stock plans. The merger aims to leverage Tvardi’s therapeutic approach to address unmet medical needs and will bring changes to Cara’s board of directors. Additionally, Cara Therapeutics has regained compliance with Nasdaq’s minimum bid price requirement after executing a one-for-twelve reverse stock split. This compliance was crucial for maintaining its Nasdaq listing, which had been at risk due to previous noncompliance issues. Cara had also received a notice regarding stockholders’ equity requirements, which prompted the proposed merger as part of its compliance plan. The merger is expected to help meet Nasdaq’s initial listing criteria, although it remains subject to customary closing conditions. Legal actions from certain stockholders have emerged, but Cara has provided additional disclosures to address these concerns.
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