Dermata Therapeutics shareholders approve reverse stock split and key proposals

Published 16/07/2025, 11:16
Dermata Therapeutics shareholders approve reverse stock split and key proposals

Dermata Therapeutics , Inc. (NASDAQ:DRMA) announced the results of its 2025 Annual Meeting of Stockholders held Tuesday. The micro-cap biotech company, currently valued at $4.66 million, has seen its stock surge 12% over the past week, though it remains down 45% over the past six months. According to a press release statement and SEC filing, shareholders voted on six proposals, all of which were approved.For deeper insights into DRMA’s financial health and growth potential, InvestingPro subscribers have access to over 10 additional key metrics and analysis tools.

The election of Mary Fisher and Andrew Sandler M.D. as Class I directors was confirmed, with 1,936,674 and 1,936,478 votes cast in favor, respectively. Each will serve a three-year term.

Stockholders also ratified the appointment of Baker Tilly US, LLP as the company’s independent registered public accounting firm for the fiscal year ending December 31, 2025, with 3,229,829 votes in favor.

Two proposals related to compliance with Nasdaq Listing Rule 5635(d) were approved. The first authorizes the issuance of shares of common stock underlying certain warrants issued pursuant to a Securities Purchase Agreement dated January 21, 2025. The second authorizes the issuance of shares underlying warrants from an Inducement Letter dated March 27, 2025. Both proposals received 1,874,375 votes in favor.

Shareholders adopted an amendment to the company’s Amended and Restated Certificate of Incorporation to effect a reverse stock split of common stock at a ratio between one-for-two (1:2) and one-for-thirty (1:30), with the exact ratio to be determined by the Board of Directors. The reverse stock split proposal received 2,784,798 votes in favor.

An adjournment proposal, allowing the annual meeting to be adjourned if necessary for additional voting on the issuance or reverse stock split proposals, was also approved with 2,798,106 votes in favor.

The company’s common stock and warrants continue to be listed on the Nasdaq Capital Market under the symbols DRMA and DRMAW.

This information is based on a press release statement and details disclosed in the company’s SEC filing.

In other recent news, Dermata Therapeutics has been granted an extension by a Nasdaq panel to meet the minimum bid price requirement, giving the company until August 14, 2025, to comply with the Nasdaq Capital Market’s rule of maintaining a minimum bid price of $1.00 per share. This follows a previous notice from Nasdaq indicating that Dermata’s stock had fallen below the required threshold for 30 consecutive business days. Meanwhile, Dermata is preparing for its Phase 3 STAR-2 trial for XYNGARI, with drug production underway and the trial set to begin in the fourth quarter of 2025. The trial aims to support a New Drug Application submission to the FDA, with expected topline results in the first half of 2027.

In another development, Maxim Group has adjusted its outlook on Dermata Therapeutics, reducing the price target to $3.00 from $6.00 but maintaining a Buy rating. This adjustment comes after Dermata’s recent financial disclosures, which revealed first-quarter operating expenses below expectations and a GAAP loss per share in line with projections. Dermata reported significant positive results from its first pivotal Phase 3 trial of XYNGARI, a treatment for moderate-to-severe acne, setting the stage for the upcoming second Phase 3 trial. As of March 31, 2025, the company had $9.7 million in cash and no debt, with a projected quarterly cash burn of $2.6 million, which is expected to sustain operations into the first quarter of 2026. However, a potential capital raise might be necessary later in 2025 to fund ongoing clinical initiatives.

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