Virpax Pharmaceuticals enacts 1-for-25 reverse stock split

In a move aimed at restructuring its capital, Virpax Pharmaceuticals, Inc., currently valued at $2.26 million, has executed a 1-for-25 reverse stock split of its common stock, effective as of today. According to InvestingPro data, the stock has experienced significant pressure, falling 40% in the past week alone. The adjustment was authorized following the approval from the company’s Board of Directors and the consent given by stockholders at a special meeting held on January 15, 2025.

The reverse stock split, which was officially enacted at 12:01 a.m. Eastern Time today, has proportionally consolidated every twenty-five shares of existing common stock into one share. This action has reduced the total number of outstanding shares from approximately 31.1 million to about 1.24 million. The par value and the authorized number of shares remain unaltered by this amendment. InvestingPro analysis indicates the stock is currently trading at $2.07, with technical indicators suggesting oversold conditions.

The decision to implement the reverse stock split was made subsequent to the stockholders’ meeting, where the Board was granted the discretion to choose a ratio within the range of 1-for-2 to 1-for-240. The Board finalized the 1-for-25 ratio on March 5, 2025. With an overall Financial Health Score labeled as ’WEAK’ by InvestingPro, this restructuring comes at a crucial time for the company.

As a result of the reverse stock split, the company’s common stock continues to trade on The Nasdaq Stock Market LLC under the ticker symbol "VRPX," albeit with a new CUSIP number, 928251305. Adjustments have also been made to Virpax Pharmaceuticals’ outstanding equity awards and warrants to reflect the revised stock structure, including the modification of exercise prices and terms.

This strategic move is detailed in a Certificate of Amendment filed with the Secretary of State of Delaware. The company’s headquarters remain in Berwyn, PA, and the reverse stock split is reported based on a press release statement.

In other recent news, Virpax Pharmaceuticals has announced a 1-for-25 reverse stock split, which will reduce the number of outstanding shares from approximately 31.1 million to about 1.24 million. This move aims to comply with Nasdaq’s minimum bid price requirement and potentially attract a broader range of investors. Additionally, Virpax reported positive results from a study on its Probudur drug in beagle dogs, showing high tolerance levels without adverse effects. This development is part of the company’s efforts to submit an Investigational New Drug (IND) application for Probudur, which aims to provide long-acting pain relief without opioids.

In another study, Virpax, in collaboration with the U.S. Army Institute of Surgical Research, found that Probudur effectively reduced pain behaviors in a rat model, further supporting its potential as a post-operative pain management solution. The company also acknowledged the successful completion of a human study by Nanomerics using Molecular Envelope Technology (MET), which is employed in Virpax’s products Envelta and NobrXiol. No moderate or severe adverse events were reported in this study.

Furthermore, Virpax has appointed Mr. Charn Deol as an independent director, bringing over 35 years of public company management experience to the board. Mr. Deol will serve as the Chair of the Audit Committee and be a member of other key committees. These recent developments highlight Virpax Pharmaceuticals’ ongoing efforts in product development and corporate governance.

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