Entero Therapeutics announces 1-for-3 reverse stock split

BOCA RATON - Entero Therapeutics, Inc. (NASDAQ:ENTO), currently trading at $0.63 with a market capitalization of $2.98 million, announced Thursday it will implement a 1-for-3 reverse stock split effective August 18, 2025, as part of efforts to regain compliance with Nasdaq’s minimum bid price requirement.

The reverse split, approved by both the board of directors and shareholders, aims to maintain the company’s listing on the Nasdaq Capital Market, which requires a minimum bid price of $1.00 per share. According to InvestingPro data, the stock has shown strong momentum recently, with a 60.93% return over the past week and an impressive 119.65% gain over the last year.

Following the implementation, Entero’s outstanding common stock will be reduced from approximately 4.77 million shares to about 1.59 million shares. Stockholders entitled to fractional shares will receive cash in lieu of those shares.

"The reverse split is a necessary step in our efforts to maintain our listing on the Nasdaq market," said Richard Paolone, Entero’s Interim Chief Executive Officer, according to the company’s press release.

Entero Therapeutics is a clinical-stage biopharmaceutical company focused on developing targeted, non-systemic therapies for gastrointestinal diseases. The company’s main program involves Adrulipase, a recombinant lipase enzyme designed for cystic fibrosis and chronic pancreatitis patients with exocrine pancreatic insufficiency.

The announcement comes as many smaller publicly traded biotech companies face challenges maintaining compliance with exchange listing requirements amid difficult market conditions.

In other recent news, Entero Therapeutics, Inc. has successfully raised approximately $3 million through private placement agreements with institutional investors. This transaction involved the issuance of 4,878,841 pre-funded warrants and 9,757,682 common warrants, with a combined purchase price set at $0.6149 per unit. Additionally, Entero Therapeutics announced that it has regained compliance with Nasdaq Listing Rule 5620(a) after holding its annual meeting on June 30, as confirmed by the Nasdaq Stock Market LLC. This development ensures that the company’s shares will continue to be listed on the Nasdaq Capital Market. Furthermore, Entero Therapeutics has received an extension from Nasdaq to regain compliance with the minimum stockholders’ equity requirement, with a new deadline set for October 8, 2025. The extension was granted following the company’s submission of a compliance plan, but it must adhere to specific terms to maintain its listing status. Failure to meet these requirements could result in delisting, although Entero Therapeutics would have the option to appeal.

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