Dell falls as soft current quarter guide offsets Q2 beat, full-year outlook lift
In a move to comply with NASDAQ's minimum bid price requirement, Qualigen Therapeutics, Inc. has implemented a 1-for-50 reverse stock split of its common stock, effective on Monday (NASDAQ:MNDY). The reverse stock split was approved by stockholders at the Annual Meeting on October 25, 2024, and was enacted to maintain the company's listing on the NASDAQ Capital Market.
As of the effective date, every fifty shares of the existing common stock were consolidated into one share. This action has proportionally reduced the number of shares outstanding from approximately 36.8 million to around 736,431 shares.
The consolidation did not change the number of authorized shares or any stockholder's percentage ownership in the company, except for adjustments due to the elimination of fractional shares.
Instead of issuing fractional shares, the company will compensate stockholders with cash payments based on the closing price of the stock on the business day before the reverse stock split.
The company's common stock began trading on a split-adjusted basis on the NASDAQ Capital Market under the same ticker symbol "QLGN" with a new CUSIP number 74754R 301.
Shareholders who hold their shares in physical form will receive instructions from the transfer agent, Equiniti Trust Company, on how to exchange their stock certificates. Those with shares in brokerage accounts will see the change reflected automatically.
This strategic move by Qualigen Therapeutics, a pharmaceutical company with a primary focus on developing novel therapeutics, is aimed at bolstering investor confidence and ensuring compliance with NASDAQ's trading policies. The company's interim CEO, Kevin A. Richardson II, has signed off on the SEC filing, which is based on a press release statement.
In other recent news, Qualigen Therapeutics has seen significant changes in its leadership and financial strategy. The company's CEO Michael Poirier and CFO Christopher Lotz have resigned, with Kevin Richardson stepping in as Interim CEO and CFO, and Campbell Becher appointed as President.
In addition, Qualigen has been actively managing its financial affairs, pricing its public offering at $0.13 per share, aiming to raise approximately $3.46 million.
Furthermore, the firm issued a $1.25 million loan to Marizyme and secured a $2 million cash infusion via a non-convertible senior note. The company's 8% Senior Convertible Debenture's original principal balance of $3.3 million was fully converted into common stock. On the regulatory front, Qualigen received an extension to remain listed on The Nasdaq Capital Market until November 19, 2024.
At its recent annual stockholder meeting, all director nominees were elected, and the appointment of WithumSmith+Brown, PC as the independent registered public accounting firm was ratified.
Stockholders approved a reverse stock split and the issuance of more than 20% of the company's issued and outstanding common stock to Alpha Capital Anstalt. These developments highlight recent changes in Qualigen Therapeutics' strategic direction and financial management.
InvestingPro Insights
Following Qualigen Therapeutics' reverse stock split, InvestingPro data provides additional context to the company's financial situation. As of the latest available data, Qualigen's market capitalization stands at a modest $2.56 million, reflecting its status as a small-cap pharmaceutical company. The stock's performance has been challenging, with a significant year-to-date price total return of -82.65% as of the most recent data point.
Two relevant InvestingPro Tips highlight the company's current challenges. Firstly, Qualigen "suffers from weak gross profit margins," which is evident in the reported gross profit of -$3.87 million for the last twelve months. Secondly, "analysts do not anticipate the company will be profitable this year," aligning with the negative earnings per share (EPS) figures reported. These insights underscore the financial hurdles Qualigen faces as it implements the reverse stock split to maintain its NASDAQ listing.
For investors seeking a more comprehensive analysis, InvestingPro offers 9 additional tips that could provide further insights into Qualigen's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.