Windtree Therapeutics enacts reverse stock split, expands equity plan

Published 03/02/2025, 23:42
Windtree Therapeutics enacts reverse stock split, expands equity plan

WARRINGTON, PA – Windtree Therapeutics Inc. (NASDAQ:WINT), a biotechnology company specializing in biological products, announced the outcome of two significant proposals voted on by shareholders at a Special Meeting held today. The company, currently trading at $0.13 and down 98% over the past year according to InvestingPro data, faces significant challenges with its market capitalization now at just $1.11 million.

In a decisive move, shareholders approved an amendment to the company’s Amended and Restated Certificate of Incorporation to effect a reverse stock split of its outstanding common stock. The approved ratio ranges from 1-for-5 to 1-for-50, with the exact ratio and timing to be determined by the company’s Board of Directors. The final vote tally showed 2,504,535 votes in favor, 1,752,258 against, and 103,627 abstentions.

Additionally, the company sought approval to amend its Amended and Restated 2020 Equity Incentive Plan (A&R 2020 Plan). Shareholders voted to increase the number of shares authorized for issuance under the plan from 41,010 to 1,141,010. This proposal received 586,282 votes for, 1,323,734 against, and 69,270 abstentions, with 2,381,134 broker non-votes.

The voting outcomes are part of the company’s strategic efforts to adjust its capital structure and to incentivize its employees through expanded equity awards. No broker non-votes were recorded for the reverse stock split proposal. InvestingPro analysis reveals the company’s financial health score is rated as WEAK, with a concerning current ratio of 0.27, indicating potential liquidity challenges. InvestingPro subscribers have access to 14 additional key insights about WINT’s financial position.

Windtree Therapeutics, formerly known as Discovery (NASDAQ:WBD) Laboratories, has undergone several name changes since its inception, reflecting its evolving business focus. The company, headquartered at 2600 Kelly Road, Suite 100, Warrington, Pennsylvania, operates under the leadership of President and CEO Jed Latkin.

Today’s decisions are communicated in a report filed with the U.S. Securities and Exchange Commission and are based on the definitive proxy statement issued on January 8, 2025. The company’s common stock is traded on The Nasdaq Capital Market under the ticker symbol WINT. According to InvestingPro data, the company’s next earnings report is expected on April 17, 2025, which could provide crucial insights into the effectiveness of these strategic changes.

The information in this article is based on a press release statement.

In other recent news, Windtree Therapeutics has seen significant developments. The company has adjusted the terms of its Series C Preferred Stock, offering to reduce the conversion price per share. This strategic modification comes amidst financial challenges, as indicated by a weak financial health score from InvestingPro. The company has also announced significant leadership changes with the retirement of CEO Craig Fraser, who will be succeeded by Jed Latkin. Furthermore, Windtree has appointed Leanne Kelly to its board of directors.

The company has unveiled a new acquisition strategy aimed at becoming a revenue-generating entity by acquiring smaller biotech firms with FDA-approved products. However, Windtree is currently facing compliance challenges with Nasdaq’s listing standards. Despite these challenges, H.C. Wainwright has maintained a Neutral rating on the company.

Windtree Therapeutics has also reported positive results from its Phase 2b SEISMiC Extension Study, leading to preparations for Phase 3 trial readiness in the cardiogenic shock area. Additionally, the company has disclosed a potential sale of up to $27.24 million of its common stock to Seven Knots, LLC. These are among the recent developments in Windtree Therapeutics’ ongoing efforts to secure additional capital and advance its clinical development programs.

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

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