Stock market today: S&P 500 climbs as health care, tech gain; Nvidia earnings loom
In a recent virtual meeting, GRI Bio, Inc. (NASDAQ:GRI), a pharmaceutical company whose stock has declined nearly 98% over the past year according to InvestingPro data, received stockholder approval for a reverse stock split of its common stock. The special meeting, held today, saw a majority of the votes cast in favor of the reverse stock split proposal, which allows for a consolidation of shares at a ratio between one-for-two and one-for-twenty-three, as decided by the board of directors.
The decision to implement the reverse stock split aims to increase the per-share trading price of GRI Bio’s common stock, currently trading at $0.49, which could potentially lead to broader market interest and better compliance with Nasdaq’s listing requirements. InvestingPro analysis indicates the company is currently undervalued, though it faces significant challenges with rapidly depleting cash reserves. The board has the discretion to determine the exact ratio within the approved range and may also choose not to proceed with the reverse stock split if deemed in the company’s best interest.
Alongside the reverse stock split, stockholders also voted on a proposal to allow the adjournment of the special meeting, if necessary, to solicit additional proxies in the event there were insufficient votes for the reverse stock split. This measure too passed with majority support.
The special meeting’s quorum was achieved with approximately 51.94% of eligible shares present or represented by proxy. The affirmative votes for the reverse stock split totaled 3,151,775, against 1,484,078, with 4,616 abstentions. The proposal to adjourn the meeting, if needed, received 3,237,240 votes in favor, 1,390,423 against, and 12,806 abstentions.
GRI Bio’s management, including Chief Financial Officer Leanne Kelly, has been authorized to execute the necessary actions following the meeting’s outcomes. While the company maintains a healthy current ratio of 3.1, suggesting strong short-term liquidity, InvestingPro subscribers have access to 14 additional key insights about GRI’s financial health and future prospects. The information discussed in this article is based on the latest SEC filing by GRI Bio, Inc.
In other recent news, GRI Bio has shared promising preclinical data on its lead drug candidate, GRI-0621, for the treatment of Idiopathic Pulmonary Fibrosis (IPF). The company presented these findings at the 8th Annual Antifibrotic Drug Development Summit. GRI-0621, an oral small molecule RAR-βγ dual agonist, has shown potential in reducing inflammatory and fibrotic markers in IPF, a condition with limited therapeutic options. The drug has demonstrated the ability to inhibit pro-inflammatory cytokines and fibrogenic factors, reduce the accumulation of neutrophils, and inhibit the activation of fibroblasts, all of which are crucial in the development of fibrosis. Additionally, GRI-0621 has shown potential to inhibit Type 1 Invariant Natural Killer T (iNKT) cells, which play a role in lung fibrosis. GRI Bio is now advancing GRI-0621 through a Phase 2a clinical trial with IPF patients, with interim data expected in the first quarter of 2025, and topline results anticipated in the second quarter of 2025. These recent developments reflect GRI Bio’s ongoing commitment to addressing unmet medical needs.
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