How are energy investors positioned?
Salarius Pharmaceuticals, Inc. (NASDAQ:SLRX), a micro-cap biotech company with a market capitalization of $1.66 million, announced Tuesday that its shareholders approved three proposals at a special meeting, according to a statement based on a recent SEC filing. According to InvestingPro data, the company maintains a positive cash position relative to debt, though it faces significant financial challenges.
The first proposal approved was an amendment to the company’s Certificate of Incorporation to authorize a reverse stock split of its common stock at a ratio between 1-for-4 and 1-for-40. The exact ratio and timing will be determined by the company’s board of directors. Of the 789,213 shares present or represented by proxy—representing 37.10% of outstanding shares—561,364 voted in favor, 224,901 against, and 2,678 abstained.
Shareholders also approved a proposal to permit the issuance of more than 20% of the company’s outstanding shares in compliance with Nasdaq Listing Rules 5635(a) and 5635(d). This approval relates to the issuance of shares under a securities purchase agreement dated December 12, 2024, between Salarius Pharmaceuticals and C/M Capital Master Fund, LP, without the agreement’s exchange cap. This proposal received 124,631 votes in favor, 73,764 against, and 1,095 abstentions, with 589,723 broker non-votes.
The third proposal, which authorized the adjournment of the special meeting if necessary to solicit additional proxies, was also approved. Voting results were 598,521 in favor, 187,750 against, and 2,942 abstentions. Adjournment was not required as sufficient votes were received for the other proposals.
All information is based on a press release statement and the company’s SEC filing. Salarius Pharmaceuticals’ common stock is listed on the Nasdaq Capital Market under the ticker SLRX.
In other recent news, Salarius Pharmaceuticals has made significant amendments to its merger agreement with Decoy Therapeutics. The adjustments, disclosed in an SEC filing, are in response to changing market conditions and involve increasing the number of shares of Common Stock issued to Decoy stockholders by approximately 17 million. This amendment results in Salarius legacy stockholders retaining 7.6% and Decoy’s legacy stockholders holding 92.4% of the combined company. Additionally, a post-closing anti-dilution price protection has been introduced for holders of Series A Preferred Stock, effective for one year from issuance.
In another development, Salarius Pharmaceuticals faces potential delisting from The Nasdaq Capital Market. The company received a notice for not meeting the minimum bid price requirement of $1.00 for 30 consecutive business days and not qualifying for the usual 180-day compliance period due to a recent reverse stock split. Salarius plans to appeal the delisting decision and present a strategy to address compliance issues, including the planned merger with Decoy Therapeutics. However, there is no assurance of a favorable outcome from the Nasdaq Hearings Panel.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.