BERWYN, PA - Virpax Pharmaceuticals Inc. (NASDAQ:VRPX), a company specializing in pharmaceutical preparations currently trading at $0.34 with a market capitalization of $1.7 million, announced the results of a special meeting of its shareholders held on Wednesday.
The key outcome was the approval of a reverse stock split, a strategic move aiming to consolidate the company’s common stock. According to InvestingPro data, the stock has declined nearly 87% over the past year.
In the meeting, shareholders voted in favor of an amendment to the company’s Amended and Restated Certificate of Incorporation to effectuate a reverse stock split of common stock at a ratio ranging from 1-for-2 to 1-for-240. The exact ratio within this range will be determined by the company’s Board of Directors at their discretion.
Approximately 64.96% of outstanding shares were represented at the meeting, with 4,069,610 votes for and 1,117,444 against the reverse stock split, with 66,447 abstentions. InvestingPro analysis reveals concerning financial metrics, including a current ratio of 0.13, indicating potential liquidity challenges.
Additionally, the election of directors was on the agenda, where five individuals were confirmed to serve on the board until the 2025 Annual Meeting of Shareholders. Those elected are Jatinder Dhaliwal, Katharyn Field, Jaydriane Panis, Judy Su, and Esha Randhawa.
A proposal to adjourn the special meeting for further solicitation of votes if necessary did not pass, with 4,419,257 votes against the adjournment, 768,408 in favor, and 65,836 abstentions.
The company must demonstrate compliance with Nasdaq’s listing rules by April 1, 2025. Virpax Pharmaceuticals has also made amendments to the contracts of CEO Jatinder Dhaliwal and CFO Usama Chaudhry, ensuring alignment with legal regulations. Furthermore, Jaydriane Panis has joined the board of directors following the resignation of Gary Herman. The company has also lowered its quorum requirement to 34% of voting power.
Virpax Pharmaceuticals has regained Nasdaq’s independent director and audit committee requirements following the appointment of Esha Randhawa as an independent director. Lastly, the company has priced a $5 million public offering managed by Spartan Capital Securities, with the proceeds planned for the Investigational New Drug (IND) filing for Probudur™, an injectable local anesthetic for post-operative pain management.
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