Sol-Gel Technologies announces 10-for-1 reverse stock split

NESS ZIONA, Israel - Sol-Gel Technologies Ltd. (NASDAQ: SLGL), a clinical-stage dermatology company with a current market capitalization of $21.17 million, has announced a reverse share split of its ordinary shares at a ratio of 10-for-1. This action, approved by shareholders on April 1, 2025, and by the company’s board of directors on April 9, 2025, will take effect at the end of the trading day on Friday, May 2, 2025.

The reverse split is aimed at increasing the market price per share of Sol-Gel Technologies’ stock, currently trading at $0.76, to comply with Nasdaq’s minimum bid price requirement and retain its listing. According to InvestingPro analysis, the company’s stock has shown strong momentum with a 49% return over the past six months, despite current market challenges. Post-split trading on the Nasdaq Capital Market is expected to commence on Monday, May 5, 2025, under the existing ticker symbol "SLGL" and a new CUSIP number M8694L137.

As a result of the consolidation, every ten existing ordinary shares will be automatically converted into one ordinary share. Shareholders’ relative ownership percentages will remain unchanged, barring adjustments due to fractional shares, which will be rounded to the nearest whole share. The reverse split will also proportionately adjust the per share exercise price and the number of shares issuable upon the exercise of outstanding options or warrants. InvestingPro data reveals the company maintains a healthy current ratio of 5.92, indicating strong short-term liquidity position.

Concurrently, Sol-Gel Technologies will amend its articles of association to adjust the par value of its ordinary shares from 0.1 NIS to 1.0 NIS and reduce its share capital from 50,000,000 to 5,000,000 ordinary shares. Equiniti Trust Company, LLC has been appointed as the exchange and transfer agent for the reverse split. Shareholders with shares held electronically in book-entry form are not required to take any action to receive post-split shares.

Sol-Gel Technologies specializes in developing and commercializing drug products for skin diseases, with FDA-approved products TWYNEO for acne vulgaris and EPSOLAY for rosacea. While the company’s revenue growth forecast stands at 7.56% for the current year, InvestingPro analysis indicates challenges with profitability and cash burn rate. The company’s pipeline includes SGT-610, an orphan drug candidate for preventing basal cell carcinomas in Gorlin syndrome patients, and SGT-210 for rare skin keratodermas treatment. InvestingPro subscribers have access to 10 additional key insights about Sol-Gel’s financial health and growth prospects.

This announcement is based on a press release statement and contains forward-looking statements regarding the expected benefits of the reverse share split. These statements are subject to risks, uncertainties, and other factors that could affect the company’s ability to achieve the desired results.

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