Tonix Pharmaceuticals stock halted ahead of FDA approval news
NAPLES, Fla. and CAMBRIDGE, United Kingdom - Conduit Pharmaceuticals Inc. (Nasdaq: CDT), a multi-asset clinical stage life science company with a market capitalization of $4.88 million, has announced that its board of directors has approved a 1-for-15 reverse stock split. The decision comes as the company’s stock has declined over 94% year-to-date, according to InvestingPro data. The decision follows the approval from stockholders at a special meeting held on May 5, 2025. The reverse stock split is set to take effect at 5:00 pm Eastern Time on May 19, 2025, with shares expected to begin trading on a split-adjusted basis on the Nasdaq Global Market under the same ticker symbol "CDT" on May 20, 2025.
The implementation of the reverse stock split will consolidate every fifteen shares of issued and outstanding common stock into one share. Despite the consolidation, the par value per share of the company’s common stock will remain at $0.0001. This action will proportionally adjust the number of shares issuable upon the exercise of equity awards, convertible securities, and warrants, as well as the exercise price and the number of shares authorized for issuance under the company’s equity incentive plans.
Following the reverse stock split, the total number of outstanding shares of common stock will be reduced to approximately 755,900. Stockholders will not receive fractional shares as a result of the split. The company’s financial health is currently rated as WEAK by InvestingPro, with a concerning earnings per share of -$11.73 over the last twelve months. Instead, they will be compensated with a proportional cash payment for any fractional share entitlements. VStock Transfer, LLC will act as the exchange agent for the reverse stock split.
Registered stockholders with shares held electronically in book-entry form do not need to take any action to receive post-split shares. Those holding shares through brokerage accounts will have their holdings automatically adjusted, subject to their broker’s processes.
Conduit Pharmaceuticals focuses on acquiring and funding the development of Phase 2-ready assets, utilizing an AI and cybernetics-driven platform. The company, led by Dr. Andrew Regan and Dr. Freda Lewis-Hall, aims for exits through third-party license deals post-clinical trials, differing from the traditional pharma/biotech model of pursuing regulatory approval. InvestingPro analysis reveals 11 additional key insights about Conduit’s performance and financial position, essential for investors monitoring this developing situation.
The reverse stock split is detailed in the definitive proxy statement filed by Conduit with the Securities and Exchange Commission on April 25, 2025, available at www.sec.gov. This press release contains forward-looking statements about Conduit’s operations and financial position, business strategy, product candidates, and other aspects of its business, which are subject to risks and uncertainties. The company cautions that these statements are not guarantees of future performance. This information is based on a press release statement.
In other recent news, Conduit Pharmaceuticals Inc. has announced its compliance with the Nasdaq Capital Market’s listing requirements. The company reported stockholder’s equity of $2.8 million, surpassing the Nasdaq Capital Market Equity Standard’s minimum requirement. Additionally, Conduit Pharmaceuticals has made significant advancements in its research and development efforts, particularly in preclinical lupus studies and the upcoming Phase IIa clinical trial for its autoimmune disease drug candidates. Collaborating with Charles River Laboratories Inc., the company is focusing on glucokinase inhibitors for autoimmune diseases, with results expected in the second quarter of 2025.
Conduit Pharmaceuticals has also secured an extension from Nasdaq to regain compliance with certain listing rules, allowing them until March 31, 2025, to meet the necessary requirements. This follows their previous success in regaining compliance with Nasdaq’s minimum bid price rule. Furthermore, the company has made strides in securing intellectual property rights for its lead asset, AZD1656, with patents granted in Japan and Australia, and approvals from the USPTO and European Patent Office anticipated soon.
In efforts to maintain its Nasdaq listing, Conduit Pharmaceuticals has repaid a Senior Note owed to Nirland Limited, totaling $926,149, fulfilling all obligations under the associated Security Agreement. The company is also planning a transfer to the Nasdaq Capital Market to align with listing standards. These developments highlight Conduit Pharmaceuticals’ ongoing commitment to regulatory compliance and advancing its pharmaceutical pipeline.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.