HOOKIPA Pharma Announces Effective Date of 1-for-10 Reverse Stock Split
HOOKIPA Pharma has announced a 1-for-10 reverse stock split effective July 9, 2024, to comply with Nasdaq's minimum bid price requirement. The stock will trade on a split-adjusted basis from July 10, 2024, under the symbol 'HOOK' with the new CUSIP number 43906K209. The reverse split will combine every 10 outstanding shares into one, reducing the total number of issued and outstanding shares from 96.6 million to 9.7 million, and proportionately adjusting authorized shares from 400 million to 40 million. Stockholders will receive cash for fractional shares, and adjustments will be made for stock options and convertible preferred stock.
- The reverse stock split aims to bring the company's stock price into compliance with Nasdaq's minimum bid price requirement.
- The total number of outstanding shares will be reduced from approximately 96.6 million to 9.7 million, potentially making the stock more attractive to investors.
- A reverse stock split is often perceived as a sign of financial distress or an attempt to artificially boost the stock price.
Insights
The 1-for-10 reverse stock split announced by HOOKIPA Pharma Inc. is a strategic decision aimed at regaining compliance with Nasdaq's minimum bid price requirement. Reverse stock splits are often used by companies to raise their stock price, which can help maintain their listing on major exchanges. For retail investors, it’s important to understand that this move does not change the underlying value of the company; it merely consolidates shares.
In the short term, this action could lead to increased volatility in the stock price as traders adjust to the new price levels. Investors might see a higher share price, but they will own fewer shares. The effective reduction in the number of shares can sometimes improve perceived value and attract institutional investors who prefer higher-priced stocks.
In the long term, the impact will depend on the company's fundamental performance and its ability to meet milestones in its immunotherapeutics pipeline. If HOOKIPA can achieve significant clinical successes, the reduced share count could lead to more substantial gains per share. However, if the company struggles, the reverse split will not shield it from the inherent risks of its business.
For investors, it’s important to monitor the company’s subsequent quarterly reports to see if they make headway in their pipeline and how they manage their cash flow, which can influence long-term stock performance.
From a market perspective, reverse stock splits often have mixed receptions. They can sometimes be seen as a last resort to boost the stock price, potentially signaling underlying issues. However, in HOOKIPA’s case, it’s clear the company is taking proactive measures to adhere to Nasdaq's listing requirements and maintain investor confidence.
Market perception will play a key role here. If investors view this move purely as a technical adjustment, it may stabilize the stock price. Conversely, if it’s seen as a sign of desperation, it could lead to a loss of investor confidence. Watching the trading volume and market sentiment in the days following the reverse split will be telling.
For retail investors, the focus should be on the company's upcoming announcements and any news related to their clinical trials and partnerships. Positive progress could offset any immediate concerns about the reverse split, while delays or failures could exacerbate negative sentiment.
It’s also important to consider how other companies in the biotechnology sector have fared after similar moves. A comparative analysis can provide insights into potential market reactions and help investors make more informed decisions.
NEW YORK and VIENNA, July 08, 2024 (GLOBE NEWSWIRE) -- HOOKIPA Pharma Inc. (NASDAQ: HOOK, “HOOKIPA”), a company developing a new class of immunotherapeutics based on its proprietary arenavirus platform, today announced that a 1-for-10 reverse stock split of its outstanding shares of common stock will be effective as of 5:00 p.m. Eastern Time on July 9, 2024.
The Company’s common stock will begin trading on a reverse stock split-adjusted basis at the opening of the market on July 10, 2024. Following the reverse stock split, the Company’s common stock will continue to trade on the Nasdaq Capital Market under the symbol “HOOK” with the new CUSIP number 43906K209. The reverse stock split is part of the Company’s plan to regain compliance with the minimum bid price requirement for continued listing on the Nasdaq Capital Market.
At the effective time of the reverse split, every 10 issued and outstanding shares of the Company’s common stock will automatically be combined into one issued and outstanding share of the Company’s common stock without any change in the par value per share. Fractional shares will not be issued in connection with the reverse stock split. Stockholders who would otherwise be entitled to receive a fractional share will be entitled to receive a cash payment. The reverse stock split will affect all stockholders uniformly and will not alter any stockholder’s relative interest in the Company’s equity securities, except for any adjustments for fractional shares. The reverse stock split will proportionately reduce the number of authorized shares of the Company’s common stock from 400,000,000 shares to 40,000,000 shares, without any change in the par value per share. Proportionate adjustments will be made to the conversion ratio for the Company’s Class A Common Stock and the conversion prices of the Company’s Series A Convertible Preferred Stock, Series A-1 Convertible Preferred Stock and Series A-2 Convertible Preferred Stock. In addition, proportionate adjustments will be made to the number of shares underlying, and the exercise or conversion prices of, the Company’s outstanding stock options, and to the number of shares of common stock issuable under the Company’s equity incentive plans.
The reverse stock split will reduce the number of issued and outstanding shares of the Company’s common stock from approximately 96.6 million to approximately 9.7 million.
About HOOKIPA
HOOKIPA Pharma Inc. (NASDAQ: HOOK) is a clinical-stage biopharmaceutical company focused on developing novel immunotherapies, based on its proprietary arenavirus platform, which are designed to mobilize and amplify targeted T cells and thereby fight or prevent serious disease. HOOKIPA’s replicating and non-replicating technologies are engineered to induce robust and durable antigen-specific CD8+ T cell responses and pathogen-neutralizing antibodies. HOOKIPA’s pipeline includes its wholly owned investigational arenaviral immunotherapies targeting Human Papillomavirus 16-positive cancers, KRAS-mutated cancers, and other undisclosed programs. In addition, HOOKIPA aims to develop functional cures of HBV and HIV in collaboration with Gilead.
Find out more about HOOKIPA online at www.hookipapharma.com.
Forward-Looking Statements
Certain statements set forth in this press release constitute “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements can be identified by terms such as “believes,” “expects,” “plans,” “potential” and “will” or similar expressions and the negative of those terms. Forward-looking statements include those regarding the reverse stock split and the timing thereof, the impact of the reverse stock split on stockholders, including any adjustments that may result from the treatment of fractional shares, and option holders, the potential impact of the reverse stock split on the bid price of the Company’s common stock, the potential for the Company to regain compliance with the minimum bid price requirement for continued listing on the Nasdaq Capital Market, the expected number of shares of common stock to be issued and outstanding following the reverse stock split, and other statements that are not historical fact. Forward-looking statements are based on management’s current expectations and are subject to various risks and uncertainties that could cause actual results to differ materially and adversely from those expressed or implied by such forward-looking statements, including risks and uncertainties associated with general economic and market conditions and other risks and uncertainties, including those discussed in the section titled “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, as well as discussions of potential risks, uncertainties, and other important factors in HOOKIPA’s subsequent filings with the Securities and Exchange Commission, which are available on the SEC’s website at www.sec.gov. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, these expectations may not prove to be correct, and you are cautioned not to place undue reliance on these forward-looking statements. These forward-looking statements speak only as of the date hereof, and the Company disclaims any obligation to update these statements except as may be required by law.
Availability of Other Information About HOOKIPA
Investors and others should note that we announce material financial information to our investors using our investor relations website, www.ir.hookipapharma.com, SEC filings, press releases, public conference calls and webcasts. We use these channels, as well as social media, to communicate with our investors and the public about our company, our services and other issues. It is possible that the information we post on social media could be deemed to be material information. Therefore, we encourage investors, the media, and others interested in our company to review the information we post on the social media channels listed on our investor relations website.
For further information, please contact: Investors & Media Michael Kaiser michael.kaiser@hookipapharma.com +1 (917) 984-7537
FAQ
What is the effective date for HOOKIPA Pharma's 1-for-10 reverse stock split?
When will HOOKIPA Pharma's stock begin trading on a split-adjusted basis?
What is the new CUSIP number for HOOKIPA Pharma's stock after the reverse split?
Why is HOOKIPA Pharma conducting a reverse stock split?
How many shares will HOOKIPA Pharma have outstanding after the reverse stock split?
