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Cara Therapeutics (NASDAQ:CARA), a micro-cap biotech company currently valued at $20.25 million, recently reported that Scott Terrillion, the company’s Secretary, Chief Compliance Officer, and General Counsel, sold shares of the company’s common stock. The transaction, disclosed in a regulatory filing, involved the sale of 163 shares at an average price of $4.76 per share, resulting in a total transaction value of approximately $775. The stock has since declined to $4.43, marking a 7.58% drop over the past week, according to InvestingPro data.
This sale was conducted as part of a "sell to cover" arrangement, which Terrillion had adopted back in September 2018. This arrangement was designed to cover tax obligations triggered by the vesting of restricted stock units. It’s important to note that this transaction does not reflect a discretionary trade by Terrillion.
Following this transaction, Terrillion retains ownership of 7,190 shares in the company. The reported number of shares owned reflects a 1-for-12 reverse stock split executed by Cara Therapeutics on December 30, 2024.
In other recent news, Cara Therapeutics has reported several significant developments. The company has successfully regained compliance with Nasdaq’s minimum bid price requirement after executing a one-for-twelve reverse stock split, which was aimed at addressing previous compliance issues. This stock split, effective December 31, 2024, reduced the number of issued and outstanding shares significantly and was part of a broader strategy to maintain Nasdaq listing standards. Cara Therapeutics is also moving forward with a proposed merger with Tvardi Therapeutics, an all-stock transaction that will create a new entity focused on fibrosis-driven diseases. The merger agreement, which is still pending, involves Cara stockholders owning about 17% of the new company, while Tvardi investors will hold approximately 83%. This merger is expected to help fulfill Nasdaq’s stockholders’ equity requirement and is anticipated to close in the first half of 2025, subject to customary approvals. Additionally, Cara Therapeutics has entered into an asset purchase agreement with Vifor Fresenius Medical (TASE:BLWV) Care (NYSE:FMS) Renal Pharma, selling certain rights related to Korsuva®/Kapruvia® for $900,000. As these transactions unfold, both companies have emphasized the strategic importance of these moves for their future operations.
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