Petros Pharmaceuticals Announces Reverse Stock Split

Petros Pharmaceuticals , Inc. (NASDAQ:PTPI) has announced a 1-for-25 reverse stock split of its common stock, which became effective as of April 30, 2025. The reverse stock split was approved by the company’s stockholders during the annual meeting held on November 20, 2024. The decision was made following a delisting notice from Nasdaq due to concerns about the company’s public offering of securities that closed on February 19, 2025. According to InvestingPro data, the company faces significant financial challenges, with a weak overall health score and a market capitalization of just $0.54 million. Petros Pharmaceuticals is appealing the notice and the delisting action has been stayed pending a hearing.

The reverse stock split combined every 25 shares of issued and outstanding common stock into one share, without changing the par value per share. This action did not result in the issuance of any fractional shares; instead, fractional shares were rounded up to the nearest whole number. The authorized shares of common stock remain at 7,000,000,000 shares. The move comes as the stock has experienced significant pressure, with InvestingPro showing a year-to-date decline of 97.47% and a current ratio of 0.4, indicating potential liquidity concerns. Adjustments were also made to the per share exercise price and the number of shares purchasable upon the exercise of outstanding stock options. The number of shares reserved for issuance under the company’s 2020 Omnibus Incentive Compensation Plan was proportionally reduced.

The common stock began trading on a split-adjusted basis on May 1, 2025. The trading symbol "PTPI" remains unchanged, but the new CUSIP number for the common stock following the reverse stock split is 71678J308. Investors should note that the company’s next earnings report is scheduled for May 15, 2025, which could provide crucial insights into its financial trajectory. For comprehensive analysis and additional insights, check out InvestingPro, which offers 15 more exclusive tips about PTPI’s financial situation.

This information is based on a press release statement and the definitive proxy statement filed with the U.S. Securities and Exchange Commission on October 25, 2024, as well as the complete text of the Certificate of Amendment, which is filed with the report as Exhibit 3.1.

In other recent news, Petros Pharmaceuticals is making significant strides with its new software-as-a-service platform aimed at transitioning prescription medications to over-the-counter status. This platform is designed to align with FDA guidelines, offering features such as patient self-selection tools and integration with electronic health records. In an effort to address compliance issues with Nasdaq’s listing rules, Petros announced a reverse stock split and increased its authorized shares from 250 million to 7 billion. Additionally, the company has engaged CBIZ (NYSE:CBZ) CPAs as its new auditor following the acquisition of its previous auditor’s attest business.

Petros is also facing the possibility of delisting from Nasdaq due to not meeting the minimum stockholders’ equity requirement, though it has appealed the notice. To bolster its Rx-to-OTC switch technology, Petros has formed a strategic collaboration with a big data provider to enhance its AI-driven platform. This partnership aims to improve the identification verification system, ensuring patient eligibility for OTC medications. These developments reflect Petros’ ongoing efforts to innovate in the self-care market, which is projected to grow significantly in the coming years.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.