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HOUSTON - CNS Pharmaceuticals, Inc. (NASDAQ:CNSP), a biopharmaceutical company engaged in the development of cancer treatments, announced that it will execute a 1-for-50 reverse stock split, effective Tuesday, February 21, 2025. This corporate action is aimed at increasing the company’s share price to comply with Nasdaq’s minimum price requirement. According to InvestingPro data, CNSP’s stock has seen a significant 37% return over the last week, though it remains down 99% over the past year.
The reverse split will consolidate every 50 shares of issued and outstanding common stock into one share. Consequently, the number of CNSP shares a stockholder owns will decrease, but the value of each share will increase proportionately, leaving the overall value of shares held substantially the same, barring market fluctuations. With a current market capitalization of just $8.1 million and an overall Financial Health score rated as "FAIR" by InvestingPro, the company’s stock will continue trading on the Nasdaq under the ticker symbol "CNSP" and will be assigned a new CUSIP number: 18978H409.
Adjustments will also be made to CNS’s outstanding warrants, equity-based awards, and other equity rights. The exercise or conversion prices will be increased by a factor of 50, while the number of shares underlying these securities will be divided by the same ratio. No fractional shares will be issued; instead, stockholders who would have received a fractional share will get a cash payment.
CNS Pharmaceuticals focuses on the development of novel therapies for primary and metastatic brain and central nervous system cancers. Its lead drug candidate, Berubicin, is an anthracycline designed to cross the blood-brain barrier, currently in development for various serious brain oncology indications, including glioblastoma multiforme (GBM). The company’s secondary candidate, TPI 287, has been tested in over 350 patients for its potential to treat CNS tumors and other conditions. InvestingPro analysis reveals that while the company holds more cash than debt, it’s quickly burning through its reserves, with analyst consensus suggesting continued unprofitability this year.
The reverse stock split affects all shareholders uniformly and does not alter any stockholder’s percentage interest in the company’s equity, except for minor adjustments due to the elimination of fractional shares.
The information in this article is based on a press release statement from CNS Pharmaceuticals, Inc.
In other recent news, CNS Pharmaceuticals received shareholder approval for a reverse stock split and the repricing of certain warrants. This decision was made during a special meeting of stockholders, as disclosed in a recent SEC filing. The board now has the authority to implement a reverse stock split of the company’s common stock at a ratio between 1-for-2 and 1-for-50 within a year. Additionally, shareholders approved the repricing of warrants for purchasing up to 2,434,120 shares of common stock, setting the new exercise price to the lower of $1.13 per share or the closing price on the approval date. A third proposal passed, authorizing the adjournment of the meeting if necessary to solicit additional proxies. These actions align with Nasdaq Listing Rule 5635(d), which requires shareholder approval for certain equity-related proposals. The voting results indicate a clear mandate for these changes, providing the company’s board with discretion to enact them.
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