Bio-Path Holdings Announces 1-for-20 Reverse Stock Split
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Insights
A reverse stock split is often used by companies to boost the share price and maintain compliance with exchange listing requirements. In the case of Bio-Path Holdings, the 1-for-20 reverse stock split will significantly reduce the number of shares outstanding, from approximately 12.35 million to around 617,833. This action can have both positive and negative implications for the company and its shareholders.
On the positive side, a higher share price may attract institutional investors who avoid stocks under a certain threshold. It could also deter short selling, which is more prevalent in lower-priced stocks. However, on the downside, existing shareholders may interpret a reverse split as a sign that the company is in distress, particularly if the move is primarily to satisfy exchange listing requirements. Moreover, while the par value remains unchanged, the market's perception of the stock's value could be affected.
For the stock market, the immediate impact will likely be a recalibration of the share price on the effective date. In the longer term, the success of this strategy will depend on the company's operational performance and the market's reception of its product pipeline, particularly its DNAbilize® antisense RNAi nanoparticle technology and clinical trials progress.
The biotech sector is highly sensitive to news related to clinical trials and regulatory milestones. Bio-Path Holdings' announcement of a reverse stock split coincides with updates on its clinical trials for cancer drug candidates. The company's proprietary DNAbilize® platform is noteworthy because it represents a novel approach in the crowded field of RNAi therapeutics, which could potentially offer a competitive edge.
However, the success of biotech firms like Bio-Path is highly dependent on their ability to bring drug candidates through the clinical trial process and ultimately receive FDA approval. The enrollment and dosing of the first patient in a Phase 1/1b clinical trial for Liposomal Bcl-2 and the upcoming IND application for Liposomal STAT3 are critical milestones. These developments could significantly influence the company's valuation and investor sentiment.
It is important to note that while the reverse stock split does not directly affect the company's technology or clinical progress, it could be a strategic move to align the company's stock profile with its scientific advancements. If Bio-Path's drug candidates show promising results, the reduced share count post-split could amplify the positive impact on the stock price.
From a legal perspective, the reverse stock split does not alter the rights or preferences of the common stock, which is an important consideration for shareholders. The company has ensured compliance with securities laws by adjusting all outstanding securities, including stock options and warrants, as required by the terms of those securities.
Additionally, the provision of whole shares in lieu of fractional shares to stockholders who would otherwise hold a fraction post-split is a common practice to avoid the complexities and costs associated with fractional share trading. This is a standard procedure in reverse splits and is generally viewed as a shareholder-friendly approach.
It's also significant that the company's transfer agent will maintain the book-entry records for the common stock, simplifying the process for registered stockholders. However, it's crucial for shareholders to understand the implications of such corporate actions and to consult with their financial advisors or legal counsel, especially when it comes to adjustments in their investment portfolios.
Shares of Common Stock Will Begin Trading on a Split-Adjusted Basis on February 23, 2024
HOUSTON, Feb. 21, 2024 (GLOBE NEWSWIRE) -- Bio-Path Holdings, Inc. (NASDAQ: BPTH) (the “Company”), a biotechnology company leveraging its proprietary DNAbilize® antisense RNAi nanoparticle technology to develop a portfolio of targeted nucleic acid cancer drugs, announced that it intends to effect a reverse stock split of its outstanding common stock, par value
Upon the effectiveness of the reverse stock split, every 20 shares of common stock issued and outstanding as of the effective date will be automatically combined into one share of common stock. No fractional shares of common stock will be issued in connection with the reverse stock split. If as a result of the reverse stock split, a stockholder of record would otherwise hold a fractional share, the stockholder will receive one whole share in lieu of the issuance of any such fractional share. The reverse stock split will not change the par value of the common stock or modify the rights or preferences of the common stock. The Company anticipates that the reverse stock split will reduce the number of shares of the Company’s common stock issued and outstanding from 12,352,664 shares to approximately 617,833 shares. All outstanding securities entitling their holders to purchase shares of common stock or acquire shares of common stock of the Company, including stock options and warrants, will be adjusted as a result of the reverse stock split, as required by the terms of those securities.
The Company’s transfer agent, Equiniti Trust Company, LLC will continue to maintain the book-entry records for the Company’s common stock. Registered stockholders holding pre-split shares of the Company’s common stock electronically in book-entry form are not required to take any action to receive post-split shares. Stockholders owning shares via a broker, bank, trust or other nominee will have their positions automatically adjusted to reflect the reverse stock split, subject to such broker’s particular processes and procedures; if you hold your shares with such a broker, bank trust or other nominee and if you have questions in this regard, you are encouraged to contact your nominee.
About Bio-Path Holdings, Inc.
Bio-Path is a biotechnology company developing DNAbilize®, a novel technology that has yielded a pipeline of RNAi nanoparticle drugs that can be administered with a simple intravenous transfusion. Bio-Path’s drug candidate, Liposomal Bcl-2, (BP1002, targeting the Bcl-2 protein responsible for driving cell survival in up to
For more information, please visit the Company's website at http://www.biopathholdings.com.
Forward-Looking Statements
This press release contains forward-looking statements that are made pursuant to the safe harbor provisions of the federal securities laws. These statements are based on management's current expectations and accordingly are subject to uncertainty and changes in circumstances. Any express or implied statements contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Any statements that are not historical facts contained in this release are forward-looking statements that involve risks and uncertainties, including Bio-Path’s continued listing on the Nasdaq Capital Market, Bio-Path’s ability to raise needed additional capital on a timely basis in order for it to continue its operations, have success in the clinical development of its technologies, the timing of enrollment and release of data in such clinical studies, the accuracy of such data, limited patient populations of early stage clinical studies and the possibility that results from later stage clinical trials with much larger patient populations may not be consistent with earlier stage clinical trials, the maintenance of intellectual property rights, that patents relating to existing or future patent applications will be issued or that any issued patents will provide meaningful protection of our drug candidates, the impact, risks and uncertainties related to global pandemics, including the COVID-19 pandemic, and actions taken by governmental authorities or others in connection therewith, and such other risks which are identified in Bio-Path's most recent Annual Report on Form 10- K, in any subsequent quarterly reports on Form 10-Q and in other reports that Bio-Path files with the Securities and Exchange Commission from time to time. These documents are available on request from Bio-Path Holdings or at www.sec.gov. Bio-Path disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Contact Information:
Will O’Connor
Stern Investor Relations, Inc.
212-362-1200
will@sternir.com
Doug Morris
Investor Relations
Bio-Path Holdings, Inc.
832-742-1369
FAQ
When will the reverse stock split of Bio-Path Holdings, Inc. (BPTH) common stock be effective?
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