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BERWYN, Pa. - Virpax Pharmaceuticals, Inc. (NASDAQ:VRPX), a pharmaceutical company focused on non-addictive pain management and other therapeutic areas, has announced a 1-for-25 reverse stock split of its common stock, which is set to take effect in the early hours of March 20, 2025. The company, currently valued at $3.45 million in market capitalization, has seen its stock price decline to $0.13, according to InvestingPro data. The company’s common stock will continue trading on the Nasdaq Capital Market under the ticker VRPX and will commence trading on a split-adjusted basis when the market opens on March 21, 2025.
The decision for the reverse stock split was made following a special meeting of stockholders on January 15, 2025, where stockholders authorized the Board of Directors to implement a reverse stock split at a ratio determined by the Board. The Board recently approved the final ratio of 1-for-25. The move comes as the stock has experienced significant pressure, with InvestingPro data showing a 96.89% decline over the past year and currently trading near its 52-week low of $0.12.
This reverse split will proportionately decrease the number of outstanding shares of common stock from approximately 31.1 million shares to about 1.24 million shares. Shareholder ownership percentages will remain unchanged except for adjustments due to fractional shares. Corresponding adjustments will be made to the number of shares issuable upon exercise or conversion of the company’s outstanding equity awards and warrants, as well as the applicable exercise price.
The reverse split aims to ensure compliance with Nasdaq’s minimum bid price requirement, which mandates that a company’s common stock must maintain a minimum bid price of at least $1.00 per share. It is also intended to make the stock more appealing to a wider range of institutional and retail investors. InvestingPro analysis reveals the company’s challenging financial position, with a weak overall Financial Health Score of 1.35 and a current ratio of 0.63, indicating potential liquidity concerns. Subscribers can access 11 additional ProTips and comprehensive financial metrics to better understand the company’s position.
Virpax’s transfer agent, VStock Transfer, LLC, will act as the paying agent for the reverse split and will provide instructions to stockholders on the process for exchanging stock certificates. Stockholders entitled to fractional shares as a result of the reverse split will receive a cash payment equivalent to their fractional share interest, calculated based on the average closing sales price of the common stock on Nasdaq for the ten days preceding the effective date.
Virpax Pharmaceuticals is currently developing several branded drug candidates for pain management and other indications. The company has cooperative research and development agreements for two of its prescription drug candidates and is also seeking partners for two nonprescription product candidates. While the company holds more cash than debt on its balance sheet, InvestingPro data indicates it is not currently profitable, with a return on assets of -215.8% in the last twelve months.
This news is based on a press release statement from Virpax Pharmaceuticals.
In other recent news, Virpax Pharmaceuticals has reported positive results from a study on its Probudur drug, a liposomal bupivacaine formulation intended for post-operative pain management. The study, conducted with the U.S. Army Institute of Surgical Research, demonstrated that Probudur effectively reduced pain behaviors in a rat model without the use of opioids. Additionally, Virpax acknowledged Nanomerics’ successful human study of Molecular Envelope Technology (MET), which showed no moderate to severe adverse events. MET is utilized in Virpax’s Envelta and NobrXiol products, targeting pain and epilepsy, respectively. In corporate developments, Virpax appointed Mr. Charn Deol as an independent director, filling a vacancy left by Mr. Jaydriane Panis, who resigned due to compliance requirements. Mr. Deol brings over 35 years of public company management experience and will serve on several committees within the company. These recent developments highlight Virpax’s ongoing efforts in advancing non-addictive pain management solutions and maintaining strong corporate governance.
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