Vaccinex, Inc. Announces 1-for-14 Reverse Stock Split to Secure Nasdaq Compliance
ROCHESTER, N.Y. – In a strategic maneuver to retain its Nasdaq listing and meet the minimum bid price requirement, Vaccinex, Inc. (NASDAQ: VCNX), a front-runner clinical-stage biotech company specializing in neurodegenerative diseases and cancer treatments, has announced a significant 1-for-14 reverse stock split of its issued common stock, set to take effect post-market close on Monday, February 19, 2024.
The decision comes on the heels of a Special Meeting of Vaccinex's stockholders held on February 8, 2024, which saw the approval of the reverse stock split. This move is aimed squarely at addressing the Nasdaq Capital Market's stringent $1.00 minimum bid price mandate – a benchmark that Vaccinex has until March 4, 2024, to achieve. The company's leadership and Board of Directors believe the reverse stock split will elevate the per-share trading price, thus ensuring compliance with Nasdaq's listing criteria.
Key Aspects of the Reverse Stock Split
Starting Tuesday, February 20, 2024, Vaccinex shares will trade on a split-adjusted basis. The consolidation will transform every fourteen shares of existing common stock into a single share. This alteration will impact all shareholders equally, maintaining the proportion of their equity stake in the company, barring slight adjustments due to fractional shares – these will be rounded up to the nearest whole share.
Importantly, the total count of authorized shares of common stock remains unchanged. However, the reverse stock split will proportionately adjust the available shares for issuance under the company’s equity incentive plans and the exercise prices of outstanding options. Vaccinex's transfer agent, Computershare, Inc., is tasked with providing stockholders with detailed transaction statements reflecting their adjusted shareholdings post-split. Shareholders engaging with the company's stock via brokers or nominees will witness their holdings automatically updated to mirror the reverse split.
Vaccinex’s Strategic Focus
Vaccinex is at the forefront of developing therapies that target the inhibition of semaphorin 4D (SEMA4D), with its lead drug candidate, pepinemab, undergoing various stages of clinical trials. The focus diseases include Alzheimer's Disease and Huntington's Disease, in addition to exploring combination therapies for certain cancers. This reverse stock split underscores Vaccinex’s commitment to advancing its research and development initiatives while navigating the capital market's regulatory landscape efficiently.
For further detail regarding Vaccinex's strategic plans and ongoing clinical trials, shareholders and interested parties are encouraged to reference the official press release statement provided by the company.
This announcement is based on a press release statement. This article was generated with the support of AI and reviewed by an editor.
Analyst comment
Positive news. The reverse stock split is aimed at securing Nasdaq compliance, ensuring the company’s listing and meeting the minimum bid price requirement. The reverse stock split will elevate the per-share trading price, maintaining shareholders’ equity stake. This demonstrates Vaccinex’s commitment to advancing its research and development initiatives.
