WALTHAM, MA – AlloVir, Inc. (NASDAQ:ALVR), a company specializing in biological products currently trading at $0.44 per share with a market capitalization of approximately $50 million, has announced a reverse stock split of its common stock, with the move scheduled to take effect on the evening of January 15, 2025.
According to InvestingPro analysis, the stock appears undervalued against its Fair Value, despite falling over 40% in the past six months. The decision, which was approved by the Board of Directors, will result in AlloVir’s common stock trading on a split-adjusted basis on The Nasdaq Capital Market starting January 16, 2025.
The reverse stock split will be executed at a ratio of one-for-twenty-three (1-for-23), a range authorized by AlloVir's shareholders during a Special Meeting held on January 9, 2025. InvestingPro subscribers can access additional insights, including 7 key investment tips and comprehensive financial health metrics that help evaluate the potential impact of corporate actions like this reverse split.
This action is part of the company's strategy leading up to a proposed merger with Kalaris Therapeutics, Inc., a process that has been detailed in filings with the Securities and Exchange Commission (SEC), including a definitive proxy statement and a registration statement on Form S-4.
As a result of the reverse stock split, no fractional shares will be issued. Shareholders who would have received a fraction of a share will instead be given a cash payment, calculated based on the fraction multiplied by the closing price of AlloVir’s common stock on Nasdaq on January 15, 2025, adjusted for the split. A new CUSIP number, 019818202, will be assigned to AlloVir’s common stock when the reverse stock split takes effect.
AlloVir has filed relevant materials with the SEC regarding the proposed merger and reverse stock split, including proxy statements and other documents that are available for investors to review. These documents are accessible on the SEC's website and on AlloVir's website, providing important information about the company, the proposed merger, and the reverse stock split.
With analyst price targets reaching $1.50 and the next earnings report due on February 12, 2025, InvestingPro subscribers can access detailed financial analysis and real-time updates to make informed investment decisions.
The company has emphasized that this announcement does not constitute an offer to sell or buy securities or a solicitation of any vote or approval with respect to the proposed merger or otherwise.
This news article is based on information contained in a press release statement and SEC filings by AlloVir, Inc.
In other recent news, AlloVir, Inc. has seen significant developments, including a leadership shakeup and a shareholder-approved reverse stock split. Recently, Vikas Sinha stepped into the role of Chief Executive Officer, following the amicable departure of former CEO, Diana Brainard. Sinha, with over two decades of experience in the life sciences industry, takes the helm during a crucial period for AlloVir.
In a recent shareholder meeting, AlloVir's proposal for a reverse stock split was approved, with the potential consolidation ratio ranging between 1-for-15 and 1-for-35. The exact ratio, to be determined by AlloVir's Board of Directors, will be publicly announced once decided. This strategic move is part of a broader plan involving a proposed merger with Kalaris Therapeutics, Inc.
In addition to these changes, the company faces profitability challenges, despite a strong liquidity position and more cash than debt on its balance sheet. The reverse stock split and leadership change are part of recent developments aimed at addressing these challenges.
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