Shuttle Pharma shareholders approve reverse stock split

Published 01/08/2024, 16:38
Shuttle Pharma shareholders approve reverse stock split

Shuttle Pharmaceuticals Holdings, Inc. (NASDAQ: SHPH), a biopharmaceutical company, Thursday said that it has received approval from its shareholders for its reverse stock split.

The Gaithersburg, Maryland-based company reported that all six board director nominees were elected with significant majorities.

The directors, including Anatoly Dritschilo, MD, Milton Brown, MD, PhD, Chris Senanayake, PhD, Steven Richards, Joshua Schafer, and Bette Jacobs, PhD, will serve one-year terms.

Additionally, shareholders ratified the appointment of Forvis Mazars LLP as the independent auditors for the fiscal year ending December 31, 2024. The advisory vote on executive compensation also passed, affirming the company's executive pay structure.

A critical proposal that received approval was the authorization for the board of directors to amend the company’s certificate of incorporation to execute a reverse stock split within a range of 1-for-3 to 1-for-8.

Shuttle recently disclosed plans to restate its financial statements for the year ended December 31, 2022, and the first quarter of 2024 due to identified accounting errors. This decision was taken post-audit and in consultation with Forvis Mazars LLP, the company's current auditor.

The restatement will reflect an increased net loss attributable to common stockholders, from $3.1 million to $3.7 million for 2022, and an increase in additional paid-in capital and accumulated deficit by approximately $7.7 million each.

InvestingPro Insights

As Shuttle Pharmaceuticals Holdings, Inc. (SHPH) navigates through its corporate governance and financial restatements, investors may find the company's current financial health and future prospects of particular interest. Here are some insights based on data and tips from InvestingPro:

InvestingPro Data highlights a Market Cap of approximately $6.73 million, which reflects the company's current valuation in the market. The Price to Book ratio, as of the last twelve months leading to Q1 2024, stands at 2.33, giving a sense of how the market values the company's net assets. Moreover, the company's EBITDA growth has seen a significant decline of 65.72% over the same period, which could be a point of concern for potential investors looking at the company's operational performance.

Two InvestingPro Tips that might be crucial for shareholders and potential investors are:

1. Shuttle Pharmaceuticals holds more cash than debt on its balance sheet, which is generally a positive sign of financial stability.

2. Despite the company not being profitable over the last twelve months, it has liquid assets that exceed its short-term obligations, indicating a degree of liquidity that may reassure investors about the company's ability to meet its immediate financial obligations.

These tips, along with additional insights, can be further explored on InvestingPro, where there are currently 6 more tips listed for SHPH, offering a comprehensive analysis for those interested in the company's financial nuances. For a deeper dive into these metrics and to uncover more tips, visit InvestingPro's dedicated page for Shuttle Pharmaceuticals at https://www.investing.com/pro/SHPH.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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