EU and US could reach trade deal this weekend - Reuters
Forte Biosciences, Inc. (NASDAQ:FBRX) announced a significant change in its capital structure today, as it executed a reverse stock split of its common stock. The pharmaceutical company, which is incorporated in Delaware and operates out of Dallas, Texas, filed a certificate of amendment to its Amended and Restated Certificate of Incorporation to effectuate a 1-for-25 reverse stock split.
The reverse stock split became effective at 8:00 a.m. Eastern Time on Tuesday, August 28, 2024, with the company's common stock beginning to trade on a reverse-split-adjusted basis on the Nasdaq Capital Market from the opening of trading on the same day. The stock continues to be listed under the ticker symbol "FBRX" but is now represented by a new CUSIP number, 34962G 208.
As a result of this corporate action, each 25 shares of the common stock that were outstanding immediately prior to the effective time were combined into one new share of common stock. The company stated that no fractional shares would be issued.
Instead, stockholders who would have received a fractional share will be paid in cash, based on the closing sales price of the common stock on Monday, August 27, 2024, as reported on Nasdaq.
The reverse stock split also necessitated proportional adjustments in the company's equity incentive plans. This includes the Tocagen (NASDAQ:FBRX) Inc. 2009 Equity Incentive Plan, the 2017 Equity Incentive Plan, the Forte Biosciences, Inc. 2018 Equity Incentive Plan, the A&R 2021 Equity Incentive Plan, the 2020 Inducement Equity Incentive Plan, and the 2017 Employee Stock Purchase Plan. The adjustments affected the number of shares subject to outstanding equity awards and the per-share exercise or purchase price.
In other recent news, Forte Biosciences, Inc. announced the approval of an amended and restated equity incentive plan, which aims to attract, retain, and motivate personnel through equity awards. A total of 8,500,000 shares of common stock are reserved for issuance under this plan.
During the same meeting, stockholders ratified the appointment of KPMG LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2024.
In addition, the company's stockholders approved a reverse stock split at a 1-for-25 ratio, set to take effect in 2024. Proportional adjustments will be made to outstanding equity awards and shares reserved for future issuance under the company's equity plans.
In analyst news, Brookline Capital Markets initiated coverage with a Buy rating for Forte Biosciences, noting the potential of FB-102, an antibody currently in development for the treatment of graft versus host disease (GVHD).
This antibody, which targets CD-122, is currently undergoing a Phase 1 trial in healthy volunteers, with trials in patients suffering from GVHD expected to commence by year-end. The analyst suggested that preliminary data indicates FB-102 could offer a superior product profile compared to the current standard of care for treating GVHD.
InvestingPro Insights
In light of Forte Biosciences' recent reverse stock split, a closer look at the company's financial health and stock performance through InvestingPro's lens offers valuable insights. An important metric to consider is the company's market capitalization, which currently stands at a modest $11.54 million. This figure is significant because it reflects the market's valuation of the company post-reverse split, indicating the level of investor confidence in its future prospects.
Moreover, two InvestingPro Tips highlight key aspects of Forte Biosciences' current situation: Firstly, the company holds more cash than debt on its balance sheet, which is reassuring for investors concerned about financial stability. Secondly, the Relative Strength Index (RSI) suggests that the stock is in oversold territory, which could imply that the stock might be undervalued or due for a rebound. These indicators can be especially pertinent for investors considering the impact of the reverse stock split on the company's share price and market perception.
Finally, it's worth noting that analysts do not anticipate the company will be profitable this year, and two analysts have revised their earnings downwards for the upcoming period. This outlook may affect investor sentiment and should be weighed against the company's strategies for future growth. For those seeking further analysis, InvestingPro offers additional tips on Forte Biosciences, available at https://www.investing.com/pro/FBRX.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.