CNS Pharmaceuticals Urges Shareholders to Vote in Favor of Proxy Proposals for the Upcoming Annual Meeting of Shareholders on July 27, 2022
CNS Pharmaceuticals (NASDAQ: CNSP) is urging shareholders to vote in favor of two proposals at the upcoming Annual Shareholder Meeting on July 27, 2022. The proposals seek authorization to increase the number of shares available for issuance and allow the Board to conduct a reverse stock split at a ratio between 1-for-2 and 1-for-30. CEO John Climaco emphasized the necessity of these measures to secure financing and maintain the NASDAQ listing amidst challenging market conditions, while stressing that such actions will only be undertaken if truly needed.
- Request for increased share issuance to enable effective financing.
- Authorization for reverse stock split to support share price and market position.
- Need for a reverse stock split indicates potential struggles in maintaining stock price.
- Stated as a cash-burning development-stage company, suggests ongoing financial vulnerabilities.
Company reiterates support of proposals for the authorization to increase number of shares available for issuance by the Company and authorization for the Board to effect a reverse stock split at their discretion
HOUSTON, July 25, 2022 /PRNewswire/ -- CNS Pharmaceuticals, Inc. (NASDAQ: CNSP) ("CNS" or the "Company"), a biopharmaceutical company specializing in the development of novel treatments for primary and metastatic cancers in the brain and central nervous system, today urged shareholders to vote in favor of the proposals outlined in the Company's Definitive Proxy Statement (the "Proxy") for the upcoming Annual Shareholder Meeting to be held Wednesday, July 27, 2022.
The proposals outlined in the Proxy include the authorization to increase the number of shares available for issuance by the Company and the authorization for the Board of Directors to effect a reverse stock split of the outstanding shares of the Company's common stock, at a split ratio of between 1-for-2 and 1-for-30 at their discretion.
"While we remain whole-heartedly dedicated to the advancement of our potentially pivotal global trial of Berubicin, we must also focus on our continued strategic fiduciary obligations to all stakeholders. After careful thought and consideration by both the management team and the board of directors, we strongly believe having these tools available at our discretion will enable us to effectively finance the Company and thereby drive the ongoing clinical development forward. To be clear, if approved, these tools will only be used if needed. It is necessary, however, as a cash-burning, development-stage company, to have the ability to issue stock on the market to raise capital and to have the best market for our shareholders to use when they wish to trade our stock. I, along with the rest of the CNS Pharmaceuticals team, urge shareholders to thoughtfully consider this opportunity to further equip the board of directors with available tools that, if needed, can be used to both maintain our NASDAQ listing by satisfying the minimum bid price requirement and enhance the long-term growth prospects of the Company by broadening our financing alternatives," commented John Climaco, CEO of CNS Pharmaceuticals. "In this turbulent and unpredictable market, we are dedicated to addressing the existential financial threats to the Company that currently exist. These tools will put the Company in the best position to manage challenging market conditions and to act, as always, in the best interest of all shareholders."
Shareholders are urged to carefully review the Proxy and accompanying materials as they contain important information regarding the Share Consolidation and its consequences to shareholders. A copy of the Proxy is available in the Investors section of the Company's website and on the U.S. Securities and Exchange Commission's website at www.sec.gov.
YOUR VOTE IS IMPORTANT. VOTE TODAY!
A proxy form or voting instruction form accompanied the Meeting materials you received by mail. Instructions on how to vote, which vary depending on whether you are a registered or beneficial shareholder of the Company, are provided in the Circular and the proxy form or voting instruction form.
About CNS Pharmaceuticals, Inc.
CNS Pharmaceuticals a clinical-stage pharmaceutical company developing a pipeline of anti-cancer drug candidates for the treatment of primary and metastatic cancers of the brain and central nervous system. The Company's lead drug candidate, Berubicin, is a novel anthracycline and the first anthracycline to appear to cross the blood-brain barrier. Berubicin is currently in development for the treatment of a number of serious brain and CNS oncology indications including glioblastoma multiforme (GBM), an aggressive and incurable form of brain cancer.
Additionally, the Company is advancing the development of its WP1244 drug technology portfolio, which utilizes anthracycline and distamycin-based scaffolds to create small molecule agents and is believed to be 500x more potent than daunorubicin in inhibiting tumor cell proliferation. Preclinical studies of WP1244 demonstrated high uptake in the brain with antitumor activity. CNS Pharmaceuticals is evaluating the use of the WP1244 portfolio in the treatment of brain cancers, pancreatic, ovarian, and lymphomas.
For more information, please visit www.CNSPharma.com, and connect with the Company on Twitter, Facebook, and LinkedIn.
Forward-Looking Statements
Some of the statements in this press release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995, which involve risks and uncertainties. Forward-looking statements in this press release include, without limitation, the timing of opening new sites in Europe. These statements relate to future events, future expectations, plans and prospects. Although CNS believes the expectations reflected in such forward-looking statements are reasonable as of the date made, expectations may prove to have been materially different from the results expressed or implied by such forward-looking statements. CNS has attempted to identify forward-looking statements by terminology including ''believes,'' ''estimates,'' ''anticipates,'' ''expects,'' ''plans,'' ''projects,'' ''intends,'' ''potential,'' ''may,'' ''could,'' ''might,'' ''will,'' ''should,'' ''approximately'' or other words that convey uncertainty of future events or outcomes to identify these forward-looking statements. These statements are only predictions and involve known and unknown risks, uncertainties and other factors, including those discussed under Item 1A. "Risk Factors" in CNS's most recently filed Form 10-K filed with the Securities and Exchange Commission ("SEC") and updated from time to time in its Form 10-Q filings and in its other public filings with the SEC. Any forward-looking statements contained in this press release speak only as of its date. CNS undertakes no obligation to update any forward-looking statements contained in this press release to reflect events or circumstances occurring after its date or to reflect the occurrence of unanticipated events.
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SOURCE CNS Pharmaceuticals, Inc.
FAQ
What proposals is CNS Pharmaceuticals making for the July 27, 2022 meeting?
What is the purpose of the reverse stock split proposed by CNS Pharmaceuticals?
Why does CNS Pharmaceuticals need to increase the number of shares?
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