Cocrystal Pharma Announces a 1-for-12 Reverse Stock Split

Rhea-AI Summary

Cocrystal Pharma, Inc. (Nasdaq: COCP) announced a 1-for-12 reverse stock split approved by its Board of Directors, effective October 11, 2022. This move aims to maintain compliance with Nasdaq Rule 5550(a)(2), which requires share prices to be above $1.00 for 30 consecutive trading days to avoid delisting. Following the split, the outstanding shares will decrease from approximately 97.5 million to around 8.1 million, while the authorized shares remain at 150 million. No fractional shares will be issued, and existing equity awards will be proportionately adjusted.

Positive

• Reverse stock split aims to comply with Nasdaq requirements and avoid delisting.
• Number of outstanding shares reduced from 97.5 million to approximately 8.1 million, potentially improving share price.

Negative

• Company's stock was not compliant with Nasdaq listing requirements, indicating financial instability.
• Reverse split may not attract new investors due to prior performance issues.

BOTHELL, Wash., Oct. 03, 2022 (GLOBE NEWSWIRE) -- Cocrystal Pharma, Inc. (Nasdaq: COCP) (Cocrystal or the Company) announces that its Board of Directors has approved a 1-for-12 reverse stock split of the Company’s common stock. Cocrystal’s common stock is expected to begin trading on a split-adjusted basis at commencement of trading on Tuesday, October 11, 2022.

The reverse stock split will support maintenance of the Company’s Nasdaq Capital Market’s listing. On November 16, 2021, Nasdaq Capital Markets LLC notified the Company that the Company was not compliant with Nasdaq Rule 5550(a)(2) by failing to be above $1.00 per share for 30 consecutive trading days. The purpose of the reverse split is to regain compliance with Nasdaq’s Rule and avoid delisting of its common stock.

The reverse stock split will reduce the number of shares of Cocrystal’s common stock outstanding from approximately 97.5 million shares to approximately 8.1 million shares, but will not change the authorized number of shares of common stock, which will remain at 150 million shares of common stock. The Company’s common stock will continue to trade on the Nasdaq Capital Market under the symbol “COCP.”

The reverse stock split will affect all stockholders uniformly and will not alter any stockholder’s percentage interest in the Company’s equity, except to the extent that the reverse stock split would result in a stockholder owning a fractional share. No fractional shares will be issued in connection with the reverse stock split. Fractional shares resulting from the reverse split will be rounded up to the nearest whole share. Holders of the Company’s common stock held in book-entry form or through a bank, broker or other nominee do not need to take any action in connection with the reverse stock split. Stockholders of record will be receiving information from the Company’s transfer agent regarding their common stock ownership post-reverse stock split.

In addition, pursuant to their terms, a proportionate adjustment will be made to the per share exercise price and number of shares issuable under all of the Company’s outstanding equity awards, and the number of shares authorized and reserved for issuance pursuant to the Company’s equity incentive plans will be reduced proportionately.

Furthermore, pursuant to their terms, a proportionate adjustment will be made to the per share exercise price and number of shares issuable under all of the Company’s outstanding warrants.

About Cocrystal Pharma, Inc.
Cocrystal Pharma, Inc. is a clinical-stage biotechnology company discovering and developing novel antiviral therapeutics that target the replication process of influenza viruses, coronaviruses (including SARS-CoV-2), hepatitis C viruses and noroviruses. Cocrystal employs unique structure-based technologies and Nobel Prize-winning expertise to create first- and best-in-class antiviral drugs. For further information about Cocrystal, please visit www.cocrystalpharma.com.

Investor Contact:
LHA Investor Relations
Jody Cain
310-691-7100
jcain@lhai.com

Media Contact:
JQA Partners
Jules Abraham
917-885-7378
Jabraham@jqapartners.com

# # #

FAQ

What is the reverse stock split announced by Cocrystal Pharma (COCP)?

Cocrystal Pharma announced a 1-for-12 reverse stock split to maintain compliance with Nasdaq listing requirements.

When will the reverse stock split take effect for COCP?

The reverse stock split for Cocrystal Pharma will take effect on October 11, 2022.

Why is Cocrystal Pharma conducting a reverse stock split?

The reverse stock split is being conducted to regain compliance with Nasdaq Rule 5550(a)(2), which requires a minimum share price of $1.00.

How will the reverse stock split affect COCP shareholders?

The reverse stock split will reduce the number of shares but will not change shareholders' percentage ownership, except for fractional shares.

What will happen to Cocrystal Pharma's stock after the reverse split?

Cocrystal Pharma's common stock will continue trading under the symbol COCP, with adjustments made to outstanding equity awards.