Bullish indicating open at $55-$60, IPO prices at $37
CAMBRIDGE, Mass. - Ernexa Therapeutics (NASDAQ:ERNA), a biotechnology company specializing in cell therapies for cancer and autoimmune diseases, has declared a reverse stock split of its common stock at a ratio of 1-for-15. The action, effective Tuesday, June 12, 2025, at 12:01 a.m. Eastern Time, is aimed at regaining compliance with Nasdaq’s minimum bid price requirement. The company’s stock has fallen 90% over the past year to $0.15, trading near its 52-week low, according to InvestingPro data.
The reverse stock split will reclassify every 15 shares of Ernexa’s issued and outstanding common stock into one new share, without altering shareholder rights or preferences. This consolidation is expected to reduce the number of outstanding shares from approximately 110.4 million to about 7.4 million, subject to rounding for fractional shares. No fractional shares will be issued; stockholders who would receive a fraction post-split will instead be rounded up to one whole share.
Ernexa’s common stock will continue trading under the ticker ERNA, with a new CUSIP number of 114082 308. Adjustments will be made to the exercise prices and number of shares underlying outstanding equity awards and warrants, as well as shares issued and issuable under the company’s equity incentive plans.
The reverse stock split was approved by the company’s stockholders at the annual meeting on June 2, 2025, and subsequently determined by the Board of Directors. Computershare Inc. and Computershare Trust Company, N.A., Ernexa’s transfer agent, will manage the exchange of shares. Stockholders holding pre-split share certificates will receive instructions from Computershare on how to exchange their shares. Those with book-entry shares or shares held through a bank, broker, or nominee will not need to take any action.
This move follows recent financial restructurings and is part of Ernexa’s strategy to strengthen its financial foundation and maintain access to capital markets, which is crucial for advancing its clinical programs. InvestingPro analysis reveals the company’s challenging financial position, with a current ratio of 0.21 and a market capitalization of $10.73 million. Despite these challenges, the company maintains an impressive gross profit margin of 93.46%. Get access to 13 additional InvestingPro Tips and comprehensive financial metrics to better understand Ernexa’s potential. Ernexa continues to focus on its lead cell therapy product, ERNA-101, for ovarian cancer treatment, and ERNA-102 for targeting autoimmune diseases.
The information provided in this article is based on a press release statement from Ernexa Therapeutics Inc.
In other recent news, Ernexa Therapeutics announced promising results from a study on their innovative cell therapy for ovarian cancer. The research demonstrated that engineered cells could significantly slow tumor growth and enhance the immune system’s ability to combat cancer, showing potential for their lead product, ERNA-101. Additionally, Ernexa Therapeutics has undergone a corporate rebranding, changing its name from Eterna Therapeutics, which became effective on March 26, 2025. The company, incorporated in Delaware, has not altered its business operations, management, or location as part of this rebranding. Furthermore, Ernexa has entered into a securities purchase agreement with accredited investors, involving the sale of common stock and pre-funded warrants, contingent on shareholder approval. The company plans to hold a shareholder meeting by June 30, 2025, to address this transaction. Key investors in this private placement include Charles Cherington and Nicholas Singer. Ernexa Therapeutics has also rescheduled its annual meeting of stockholders to June 2, 2025. These developments highlight Ernexa’s strategic financial moves and corporate governance activities.
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