Citius Pharmaceuticals, Inc. Announces 1-for-25 Reverse Stock Split
Citius Pharmaceuticals announced a 1-for-25 reverse stock split effective November 25, 2024, with split-adjusted trading beginning November 26 under the symbol CTXR. The split aims to regain Nasdaq compliance by increasing the share price above the $1.00 minimum bid requirement. The action will reduce authorized shares from 400 million to 16 million, and outstanding shares from approximately 193 million to 7.7 million. No fractional shares will be issued, with rounding up to the nearest whole share. The split will also affect outstanding warrants and stock options, with proportionate adjustments to exercise prices.
Citius Pharmaceuticals ha annunciato uno split azionario inverso di 1 per 25 che entrerà in vigore il 25 novembre 2024, con l'inizio della contrattazione regolata a seguito dello split il 26 novembre sotto il simbolo CTXR. Questo split ha l'obiettivo di riconquistare la conformità con il Nasdaq aumentando il prezzo delle azioni sopra il requisito minimo di offerta di $1,00. L'operazione ridurrà le azioni autorizzate da 400 milioni a 16 milioni e le azioni in circolazione da circa 193 milioni a 7,7 milioni. Non verranno emesse azioni frazionarie, con arrotondamento all'azione intera più vicina. Lo split influenzerà anche i warrant e le opzioni su azioni in circolazione, con aggiustamenti proporzionali ai prezzi di esercizio.
Citius Pharmaceuticals anunció una división de acciones inversa de 1 por 25 que será efectiva el 25 de noviembre de 2024, con el inicio de la negociación ajustada por la división comenzando el 26 de noviembre bajo el símbolo CTXR. El objetivo de esta división es recuperar la conformidad con Nasdaq al aumentar el precio de la acción por encima del requisito mínimo de oferta de $1.00. La acción reducirá las acciones autorizadas de 400 millones a 16 millones, y las acciones en circulación de aproximadamente 193 millones a 7.7 millones. No se emitirán acciones fraccionarias, redondeando a la acción entera más cercana. La división también afectará a los warrants y opciones sobre acciones en circulación, con ajustes proporcionales en los precios de ejercicio.
Citius Pharmaceuticals는 2024년 11월 25일에 시행되는 1-25 비율의 반대주식 분할을 발표했으며, 분할 조정 거래는 11월 26일부터 시작됩니다. 상징 CTXR로 거래됩니다. 이 분할은 주가를 $1.00의 최소 만족 요구 사항 이상으로 증가시켜 Nasdaq 준수를 회복하는 것을 목표로 하고 있습니다. 이 조치는 발행 가능한 주식을 4억 주에서 1천600만 주로, 발행된 주식을 약 1억9300만 주에서 770만 주로 줄입니다. 분할할 때 부분 주식이 발행되지 않으며, 전체 주식으로 가장 가까운 주식으로 반올림됩니다. 이 분할은 발행된 워런트와 주식 옵션에도 영향을 미치며, 행사 가격에 비례하여 조정이 이루어집니다.
Citius Pharmaceuticals a annoncé un regroupement d'actions à raison de 1 pour 25, effectif le 25 novembre 2024, avec le début de la négociation ajustée le 26 novembre sous le symbole CTXR. Ce regroupement vise à rétablir la conformité avec le Nasdaq en faisant passer le prix des actions au-dessus de l'exigence minimale d'enchère de 1,00 $. Cette mesure réduira le nombre d'actions autorisées de 400 millions à 16 millions, et le nombre d'actions en circulation d'environ 193 millions à 7,7 millions. Aucune action fractionnaire ne sera émise, avec un arrondi à l'action entière la plus proche. Le regroupement aura également un impact sur les bons de souscription et les options sur actions en circulation, avec des ajustements proportionnels des prix d'exercice.
Citius Pharmaceuticals gab eine 1-zu-25 Rückwärtsaktienaufteilung bekannt, die am 25. November 2024 wirksam wird, wobei der nach der Aufteilung angepasste Handel am 26. November unter dem Symbol CTXR beginnt. Die Aufteilung zielt darauf ab, die Nasdaq-Compliance wiederherzustellen, indem der Aktienkurs über die Mindestgebotssumme von 1,00 $ angehoben wird. Diese Maßnahme reduziert die genehmigten Aktien von 400 Millionen auf 16 Millionen und die ausgegebenen Aktien von etwa 193 Millionen auf 7,7 Millionen. Es werden keine Bruchstücke ausgegeben, wobei auf die nächste volle Aktie aufgerundet wird. Die Aufteilung wird sich auch auf ausstehende Warrants und Aktienoptionen auswirken, mit proportionalen Anpassungen der Ausübungspreise.
- No shareholder approval required, streamlining the process
- Potential to maintain Nasdaq listing by meeting minimum bid requirement
- Reverse split indicates struggle to maintain minimum share price requirement
- Risk of continued non-compliance even after split if share price doesn't stabilize
Insights
This reverse stock split represents a significant corporate action aimed at maintaining Nasdaq listing compliance. With the stock trading below
However, reverse splits often signal financial distress and typically face negative market sentiment. The lack of shareholder approval requirement under Nevada law, while legal, might raise governance concerns. The immediate focus should be on monitoring post-split trading patterns and potential selling pressure, as many reverse splits historically lead to continued share price decline without underlying fundamental improvements.
The Reverse Stock Split is intended to increase the per share trading price of Citius Pharma's common stock to regain compliance with the minimum bid price requirement of
At the effective time of the Reverse Stock Split, every twenty-five (25) issued and outstanding shares of the Company's common stock will be combined automatically into one (1) share of the Company's common stock without any change in the par value per share. No fractional shares will be issued in connection with the reverse stock split, and any fractional shares resulting from the Reverse Stock Split will be rounded up to the nearest whole share at the participant level.
The reverse stock split will reduce the number of authorized shares of the Company's common stock from 400 million shares to 16 million shares and the ownership percentage of each stockholder will remain unchanged other than as a result of the rounding of fractional shares. The Reverse Stock Split will reduce the number of issued and outstanding shares of the Company's common stock from approximately 193 million to approximately 7.7 million.
In addition, the Reverse Stock Split will apply to the Company's common stock issuable upon the exercise of the Company's outstanding warrants and stock options, with proportionate adjustments to be made to the exercise prices thereof and under the Company's equity incentive plans, as applicable.
The Company's transfer agent, VStock Transfer LLC, will act as the exchange agent for the reverse stock split. Stockholders holding their shares in book-entry form or in "street name" through a bank, broker, or other nominee will not need to take any action in connection with the reverse stock split.
Citius Pharmaceuticals, Inc. is a biopharmaceutical company dedicated to the development and commercialization of first-in-class critical care products. In August 2024, the FDA approved LYMPHIR™, a targeted immunotherapy for an initial indication in the treatment of cutaneous T-cell lymphoma. Citius Pharma's late-stage pipeline also includes Mino-Lok®, an antibiotic lock solution to salvage catheters in patients with catheter-related bloodstream infections, and CITI-002 (Halo-Lido), a topical formulation for the relief of hemorrhoids. A Pivotal Phase 3 Trial for Mino-Lok and a Phase 2b trial for Halo-Lido were completed in 2023. Mino-Lok met primary and secondary endpoints of its Phase 3 Trial. Citius is actively engaged with the FDA to outline next steps for both programs. Citius Pharmaceuticals owns
This press release may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements are made based on our expectations and beliefs concerning future events impacting Citius. You can identify these statements by the fact that they use words such as "will," "anticipate," "estimate," "expect," "plan," "should," and "may" and other words and terms of similar meaning or use of future dates. Forward-looking statements are based on management's current expectations and are subject to risks and uncertainties that could negatively affect our business, operating results, financial condition and stock price. Factors that could cause actual results to differ materially from those currently anticipated, and, unless noted otherwise, that apply to Citius Pharma and Citius Oncology, are: the potential impact of the reverse split on the bid price of the Company's common stock; Citius Pharma's ability to regain compliance with and continue to meet Nasdaq's continued listing standards; our ability to raise additional money to fund our operations for at least the next 12 months as a going concern; risks relating to the results of research and development activities, including those from our existing and any new pipeline assets; risks related to research using our assets but conducted by third parties; our ability to commercialize LYMPHIR and any of our other product candidates that may be approved by the FDA; the estimated markets for our product candidates and the acceptance thereof by any market; the ability of our product candidates to impact the quality of life of our target patient populations; our dependence on third-party suppliers; our ability to procure cGMP commercial-scale supply; our ability to obtain, perform under and maintain financing and strategic agreements and relationships; uncertainties relating to preclinical and clinical testing; the early stage of products under development; market and other conditions; risks related to our growth strategy; patent and intellectual property matters; our ability to identify, acquire, close and integrate product candidates and companies successfully and on a timely basis; government regulation; competition; as well as other risks described in our SEC filings. These risks have been and may be further impacted by any future public health risks. Accordingly, these forward-looking statements do not constitute guarantees of future performance, and you are cautioned not to place undue reliance on these forward-looking statements. Risks regarding our business are described in detail in our Securities and Exchange Commission ("SEC") filings which are available on the SEC's website at www.sec.gov, including in Citius Pharma's Annual Report on Form 10-K for the year ended September 30, 2023, filed with the SEC on December 29, 2023, as updated by our subsequent filings with the Securities and Exchange Commission. These forward-looking statements speak only as of the date hereof, and we expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in our expectations or any changes in events, conditions or circumstances on which any such statement is based, except as required by law.
Investor Contact:
Ilanit Allen
ir@citiuspharma.com
908-967-6677 x113
Media Contact:
STiR-communications
Greg Salsburg
Greg@STiR-communications.com
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SOURCE Citius Pharmaceuticals, Inc.
FAQ
When will CTXR's 1-for-25 reverse stock split take effect?
How many shares will CTXR have outstanding after the reverse split?
Why is CTXR implementing a reverse stock split?
What happens to fractional shares in CTXR's reverse split?
