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Seres Therapeutics, Inc. (NASDAQ:MCRB), currently trading at $0.66 with a market capitalization of $116.8 million, announced the approval of a new stock incentive plan and a reverse stock split following its Annual Meeting of Stockholders on April 10, 2025. According to InvestingPro analysis, the company’s stock has shown significant volatility, with prices ranging from $0.46 to $1.53 over the past 52 weeks. The new 2025 Incentive Award Plan, replacing the expiring 2015 plan, was endorsed by shareholders, authorizing the issuance of 44.6 million shares and extending the plan to March 3, 2035.
The company’s stockholders also voted in favor of a reverse stock split at a ratio of 1-for-20, effective at 5:00 p.m. Eastern Time on April 21, 2025. The common stock is expected to begin trading on a split-adjusted basis on April 22, 2025, under the existing ticker symbol "MCRB." InvestingPro data reveals the company faces financial challenges, with a weak financial health score of 1.56 and significant cash burn, as evidenced by negative free cash flow of $149 million in the last twelve months. The reverse split aims to reduce the number of outstanding shares, and no fractional shares will be issued. Stockholders who would hold fractional shares will receive a cash payment based on the April 21 closing price, adjusted for the split.
At the Annual Meeting, three Class I directors were elected to serve until the 2028 Annual Meeting, and PricewaterhouseCoopers LLP was ratified as the independent registered public accounting firm for the year ending December 31, 2025. Additionally, the compensation of the company’s named executive officers and amendments to the Certificate of Incorporation to effect the reverse stock split were approved. However, proposed amendments to clarify voting requirements for changes to authorized Common Stock and preferred stock, and to eliminate supermajority voting requirements, did not receive the necessary votes for approval.
The forward-looking statements included in the company’s report highlight the anticipated effective date of the reverse stock split and the adjusted trading of the common stock, contingent upon the filing of a Certificate of Amendment to the Amended and Restated Certificate of Incorporation with the Secretary of State of the State of Delaware.
These announcements are based on a press release statement and aim to provide shareholders with the latest developments regarding the company’s governance and stock structure. For deeper insights into Seres Therapeutics’ financial health and future prospects, investors can access comprehensive analysis and additional ProTips through InvestingPro, which offers exclusive research reports and detailed metrics for over 1,400 US stocks.
In other recent news, Seres Therapeutics reported a significant financial shortfall for the fourth quarter of 2024, with earnings per share (EPS) at -$0.81, missing the forecasted -$0.20. The company recorded a net loss of $15.7 million for the quarter, an improvement from the $34.7 million loss in the same period the previous year. Despite the financial challenges, Seres Therapeutics has made strides in reducing operational costs, notably cutting research and development expenses from $117.6 million to $64.6 million. The company continues to focus on advancing its lead program, SER-155, which has shown promising clinical results. The FDA has granted breakthrough therapy designation for SER-155, and Seres is planning a Phase II study to further its development. Additionally, the company is exploring partnership opportunities to bolster its development capabilities. The ongoing financial losses and missed earnings forecasts pose challenges, but Seres Therapeutics remains committed to its strategic focus on SER-155 and other biotherapeutic developments.
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