Veru to implement 1-for-10 reverse stock split to regain nasdaq compliance

Published 06/08/2025, 13:54
Veru to implement 1-for-10 reverse stock split to regain nasdaq compliance

MIAMI - Veru Inc. (NASDAQ:VERU), currently trading near its 52-week low of $0.45 and down about 45% over the past year, announced Wednesday it will implement a 1-for-10 reverse stock split effective at 11:59 pm CT on Friday, August 8, 2025. The biopharmaceutical company’s shares are expected to begin trading on a split-adjusted basis when markets open on August 11, 2025, under the same symbol but with a new CUSIP number.

The reverse split will consolidate every 10 shares of outstanding common stock into one share, with no change to the $0.01 par value. Shareholders will receive cash payments in lieu of any fractional shares resulting from the split. The micro-cap company, with a market capitalization of approximately $66 million, maintains a strong liquidity position with more cash than debt on its balance sheet.

Veru stated the primary purpose of the reverse split is to regain compliance with Nasdaq’s $1.00 minimum bid price requirement. The measure was approved by shareholders at a Special Meeting on July 25, 2025, with the specific ratio subsequently determined by the company’s Board of Directors.

Computershare will serve as the exchange agent for the transaction. Shareholders holding physical certificates will receive instructions on exchanging their shares, while those with book-entry holdings or shares held through brokers will not need to take any action.

The split will proportionally affect all outstanding stock options, stock appreciation rights, and equity incentive plans. The company noted that the action will not affect any shareholder’s ownership percentage except for those receiving cash payments for fractional shares.

Veru is a late clinical stage biopharmaceutical company focused on developing treatments for cardiometabolic and inflammatory diseases, according to the press release statement. The company shows a negative correlation with broader market movements, with a beta of -0.71. InvestingPro analysis reveals additional insights about Veru’s financial health and market position, with 10+ exclusive ProTips and detailed metrics available for subscribers.

In other recent news, Veru Inc. reported its second-quarter 2025 earnings, surpassing analyst expectations. The company achieved an earnings per share (EPS) of -$0.05, slightly better than the forecasted -$0.06. This improvement comes amid the company’s ongoing financial challenges and strategic focus on drug development. Additionally, Veru announced positive results from its Phase 2b Maintenance Extension clinical trial, where the enobosarm 3mg dose significantly reduced weight regain compared to a placebo after semaglutide discontinuation. In another study, Veru found that enobosarm 3mg, when combined with semaglutide, showed favorable safety results and fewer gastrointestinal side effects. This combination also led to selective fat loss while preserving lean mass. Following these findings, Veru plans to proceed with a Phase 3 clinical program and has requested a meeting with the FDA to discuss the next steps. These developments reflect Veru’s ongoing efforts in drug development and clinical trials.

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