Chromocell announces $250,000 stock repurchase plan

FREEHOLD, N.J. - Chromocell Therapeutics Corporation (NYSE American: CHRO), a biotechnology firm specializing in non-opioid pain treatments, disclosed on Wednesday that its board of directors has approved a plan to buy back up to $250,000 of its common stock. This stock repurchase initiative comprises about 23% of the company's non-affiliate float, based on the previous day's closing stock price.

The repurchase program does not mandate the company to acquire a specific number of shares and may be adjusted, paused, or terminated at any time by the board. CEO Frank Knuettel II expressed confidence in the company's ongoing drug development efforts and indicated that the undervalued stock presents a compelling investment for the company, potentially benefiting shareholder value.

Chromocell anticipates making further announcements in the near future that will underline the company's progress in drug development for neuropathic and chronic pain. The company also plans to leverage its intellectual property to explore additional pain treatments, either alone or with partners.

The repurchases will occur sporadically in the open market or through private transactions, adhering to Rule 10b-18 of the Securities Exchange Act of 1934 and other legal requirements. The volume and timing of purchases will be at the discretion of the company's management, considering factors such as stock availability, market conditions, and the company's financial performance.

Chromocell Therapeutics focuses on developing novel, non-addictive therapeutics for various types of pain, particularly targeting the NaV1.7 sodium ion channel for chronic neuropathic pain and eye pain. The company's pipeline also includes pre-clinical projects on other sodium channel receptor subtypes.

This press release contains forward-looking statements and acknowledges that actual results may differ due to a variety of risks and uncertainties. The company does not undertake any obligation to update forward-looking statements with new information or future events, except as required by law.

The information presented here is based on a press release statement from Chromocell Therapeutics Corporation.

InvestingPro Insights

In light of Chromocell Therapeutics Corporation's (NYSE American: CHRO) recent announcement to initiate a stock repurchase program, InvestingPro metrics provide a deeper financial perspective on the company's standing. With a market capitalization of just $4.18M, the company is relatively small in the biotech sector, emphasizing the significance of its repurchase plan relative to its size.

Despite the CEO's confidence in the company's drug development efforts, InvestingPro data shows that Chromocell's stock has experienced a significant decline, with a one-week total price return of -33.47% and a one-year total price return of -85.17%. This aligns with an InvestingPro Tip that the stock has taken a big hit over the last week and has fared poorly over the last month, indicating a potential undervaluation as suggested by the CEO.

Another InvestingPro Tip highlights that Chromocell holds more cash than debt on its balance sheet, which could be a strategic advantage as the company navigates its buyback program and continues to invest in its pipeline of non-opioid pain treatments. However, analysts' expectations, as revealed by another InvestingPro Tip, do not anticipate the company to be profitable this year, which is a key consideration for investors.

For those interested in a more comprehensive analysis, InvestingPro offers additional insights on Chromocell Therapeutics, with a total of 11 InvestingPro Tips available at https://www.investing.com/pro/CHRO. These tips could provide investors with a more nuanced understanding of the company's financial health and market position as they consider the implications of the buyback plan and the company's future prospects.

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