Mersana Therapeutics stock tumbles on 1-for-25 reverse split plan

Published 24/07/2025, 15:48
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Investing.com -- Mersana Therapeutics Inc (NASDAQ:MRSN) stock tumbled 18.2% after the clinical-stage biopharmaceutical company announced plans for a 1-for-25 reverse stock split to regain Nasdaq compliance.

The reverse split will take effect on July 25, 2025, with trading on a split-adjusted basis expected to begin on July 28, 2025. The company will maintain its "MRSN" ticker symbol but will receive a new CUSIP number.

Mersana’s board implemented the split following stockholder approval at the company’s Annual Meeting on June 12. The primary goal is to boost the per-share market price to meet Nasdaq Global Select Market’s minimum bid price requirement.

The move will reduce Mersana’s outstanding common shares from approximately 124.8 million to about 5.0 million. The reverse split won’t change the number of authorized shares or the stock’s par value. Proportionate adjustments will be made to equity incentive plans and outstanding equity awards.

Stockholders who would receive fractional shares due to the split will instead receive cash payments. Those holding shares electronically won’t need to take action, while those owning shares through brokers will have their positions adjusted according to their respective brokers’ processes.

Mersana Therapeutics focuses on developing antibody-drug conjugates targeting cancers in areas of high unmet medical need.

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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