BioXcel Therapeutics enacts 1-for-16 reverse stock split

BioXcel Therapeutics, Inc. (NASDAQ:BTAI), a pharmaceutical company with a market capitalization of $14.83 million, announced today the implementation of a 1-for-16 reverse stock split of its common stock, which will take effect at 5:00 p.m. Eastern Time on Friday. This action follows the approval from the company’s Board of Directors and its stockholders at a special meeting on January 28, 2025. The decision comes as the stock has experienced a significant decline of 92.6% over the past year, according to InvestingPro data.

The reverse stock split is intended to reclassify every 16 shares of issued and outstanding common stock into one new share, automatically and without any action required by shareholders. This will proportionally adjust the number of shares awarded and available under the company’s equity incentive plans, as well as the exercise price and number of shares issuable upon exercise or conversion of outstanding stock options and other equity securities. Warrants will also be adjusted accordingly.

No fractional shares will be issued as a result of the reverse stock split. Shareholders who would have received a fractional share will be compensated with a cash payment equivalent to the market value of the fraction. The reverse stock split is expected to uniformly affect all shareholders and will not change any shareholder’s percentage ownership in the company, except for adjustments due to fractional shares.

The company’s common stock will begin trading on a split-adjusted basis on The Nasdaq Capital Market under the same ticker symbol "BTAI" starting on Monday, February 10, 2025. The new CUSIP number for the common stock after the reverse stock split will be 09075P204. InvestingPro analysis reveals that the company operates with a significant debt burden and is quickly burning through cash, with a weak overall financial health score of 1.36. Subscribers to InvestingPro can access 11 additional key insights about BTAI’s financial position and market performance.

The reverse stock split aims to increase the per-share trading price of BioXcel Therapeutics’ common stock, which may improve marketability and facilitate its compliance with the continued listing requirements of The Nasdaq Capital Market. With current trading at $0.30 per share and a debt-to-capital ratio of 0.88, the company faces significant financial challenges. For comprehensive analysis of BTAI’s valuation and financial metrics, including detailed Fair Value calculations and expert insights, check out the full research report available on InvestingPro.

The information in this article is based on a press release statement from BioXcel Therapeutics and does not include any speculation or commentary on the potential impact of the reverse stock split beyond the factual information provided.

In other recent news, BioXcel Therapeutics, a biopharmaceutical company, has been active with various developments. The company declared a 1-for-16 reverse stock split, aimed at regaining compliance with Nasdaq’s minimum bid price requirement. This stock consolidation will affect all shareholders uniformly and will not change their relative ownership interest in the company.

In clinical advancements, BioXcel Therapeutics announced significant progress in its clinical programs for BXCL501, with patient enrollment advancing in the SERENITY At-Home Phase 3 trial. The company also developed plans for the TRANQUILITY In-Care Phase 3 trial of BXCL501 for agitation associated with Alzheimer’s dementia.

H.C. Wainwright analysts lowered the price target on BioXcel Therapeutics shares to $3 from $5, maintaining a Buy rating. The firm’s analysts cited the company’s ongoing financial challenges and a slowdown in commercial activities for IGALMI, its marketed product.

The company also expanded its Board of Directors with the appointment of Dr. Rajiv Patni, a seasoned professional in the biopharmaceutical industry. His extensive knowledge in biopharmaceutical product development is expected to provide valuable insights to the Board of Directors.

Finally, BioXcel Therapeutics made significant changes to its executive compensation structure, including amendments to the employment agreements of its top executives, President and CEO Vimal Mehta, PhD, and CFO Richard Steinhart. Both had their cash compensation for 2025 adjusted and were granted options to purchase shares of the company’s common stock.

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