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SOUTH SAN FRANCISCO - Vaxart, Inc. (OTCQX:VXRT), currently trading at $0.41 per share and down over 48% in the past six months according to InvestingPro data, has filed a preliminary proxy statement proposing a reverse stock split as part of its effort to regain compliance with Nasdaq’s minimum bid price requirements, according to a press release issued Thursday. Analysis from InvestingPro suggests the stock is currently undervalued based on its Fair Value model.
The clinical-stage biotechnology company, which develops oral recombinant vaccines and maintains a market capitalization of $93.1 million, has scheduled a special meeting of stockholders for September 5, 2025, to vote on the proposal. The company is proposing a reverse stock split ratio between 1-for-5 and 1-for-20, with a corresponding reduction in authorized shares proportional to the split ratio. InvestingPro analysis reveals that while the company holds more cash than debt on its balance sheet, it’s quickly burning through its cash reserves.
The filing follows Vaxart’s appeal of its trading suspension from Nasdaq. A hearing with the Nasdaq Hearings Panel is scheduled for August 14, 2025.
"The Board of Directors has carefully considered the best interests of the Company and has determined that being listed on Nasdaq provides both liquidity for stockholders as well as the enhanced ability for Vaxart to raise capital as needed," said Steven Lo, Chief Executive Officer of Vaxart.
The new proposal incorporates feedback from stockholders following the June 13 annual meeting, where a previous reverse stock split proposal was rejected. The updated plan includes a proportional decrease in authorized shares of common stock.
Vaxart plans to hold a live stockholder fireside chat to explain the need for the reverse stock split and answer questions. The special meeting will be conducted virtually on September 5 at 8:30 a.m. Pacific Time.
Based on the press release, Vaxart is developing vaccines for coronavirus, norovirus, influenza, and human papillomavirus (HPV) using its proprietary oral pill vaccine delivery platform. With analyst price targets ranging from $2 to $8 per share, investors seeking deeper insights into Vaxart’s financial health and growth prospects can access comprehensive analysis through InvestingPro’s detailed research reports, which cover over 1,400 US stocks.
In other recent news, Vaxart, Inc. has been informed by the Nasdaq Stock Market that its common stock will be suspended from trading due to non-compliance with the minimum bid price requirement. The company plans to appeal the decision after failing to meet the $1.00 per share minimum despite an extended deadline. In a positive development, Vaxart reported encouraging results from its Phase 1 trial of a second-generation oral pill norovirus vaccine, with significant increases in antibody responses compared to first-generation constructs. The trial results showed a 141% increase in GI.1 norovirus blocking antibodies and a 94% increase in GII.4 antibodies at higher doses.
To address its compliance issues with Nasdaq, Vaxart is seeking shareholder approval for a reverse stock split. The proposal, which will be voted on at an upcoming Annual Meeting, aims to adjust the stock price to meet Nasdaq’s listing requirements. The reverse stock split could be executed at a ratio not exceeding 1-for-20, with the exact ratio to be determined in a special meeting following the Annual Meeting. Vaxart’s board has also approved a proportional reduction in the authorized number of shares, contingent upon shareholder approval of the reverse stock split.
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