Phio Pharmaceuticals Announces Reverse Stock Split
Phio Pharmaceuticals announced a 1-for-9 reverse stock split, effective July 5, 2024. This measure aims to increase PHIO's trading price to meet Nasdaq's $1.00 minimum bid requirement. Post-split, the outstanding common stock will reduce from 4.6 million to approximately 0.5 million shares, while the par value remains $0.0001 per share. No fractional shares will be issued; instead, shareholders will receive cash for fractions. The company’s new CUSIP number will be 71880W501. Stockholders will receive instructions for share exchanges from Computershare Trust Company, the designated exchange agent.
- The reverse stock split will help PHIO comply with Nasdaq's $1.00 minimum bid price requirement.
- The outstanding common stock will reduce from 4.6 million shares to approximately 0.5 million shares, potentially increasing the value per share.
- Reverse stock splits often indicate underlying financial difficulties and can lead to negative market sentiment.
Insights
Phio Pharmaceuticals' decision to implement a 1-for-9 reverse stock split is primarily aimed at increasing the trading price of its common stock to meet Nasdaq's $1.00 minimum bid price requirement. Reverse stock splits are a commonly used strategy by companies facing delisting threats due to low share prices. This move will consolidate approximately 4.6 million shares into about 0.5 million, which might temporarily inflate the share price, but doesn't change the company's market capitalization or intrinsic value.
For retail investors, it's important to understand that while the higher per-share price may make the stock appear more stable, the company's fundamental financial health remains unchanged. Moreover, reverse stock splits can sometimes signal underlying financial struggles, so investors need to scrutinize the company's financial statements and future growth prospects carefully.
In the short term, this action might prevent delisting and provide some price stability. However, in the long term, the stock's performance will depend on the company's ability to advance its clinical trials and achieve commercialization milestones for its INTASYL® siRNA gene silencing technology.
Marlborough, Massachusetts--(Newsfile Corp. - July 2, 2024) - Phio Pharmaceuticals Corp. (Nasdaq: PHIO) (the "Company"), a clinical stage biotechnology company whose proprietary INTASYL® siRNA gene silencing technology is designed to make immune cells more effective in killing tumor cells, today announced that the Company's Board of Directors has approved a reverse stock split of its shares of common stock at a ratio of 1-for-9. The reverse stock split will become effective at 12:01 a.m. Eastern Time on July 5, 2024 and the Company's common stock will open for trading on The Nasdaq Capital Market on a post-split basis on July 5, 2024 under the Company's existing trading symbol, "PHIO." At such time, the Company's common stock will also commence trading with a new CUSIP number, 71880W501.
The reverse stock split is being implemented to increase the per share trading price of the Company's common stock, for the purpose of ensuring a share price high enough to comply with the minimum
At the effective time of the reverse stock split, every nine (9) shares of the Company's common stock issued and outstanding will be combined into one (1) share of common stock issued and outstanding, with no change to the par value of
The Company has retained its transfer agent, Computershare Trust Company, N.A. ("Computershare"), to act as its exchange agent for the reverse stock split. Stockholders with shares held in certificate form will receive from Computershare instructions regarding the exchange of their certificates. Stockholders that hold shares in book-entry form or hold their shares in brokerage accounts are not required to take any action and will see the impact of the reverse stock split reflected in their accounts, subject to brokers' particular processes. Beneficial holders of the Company's common stock are encouraged to contact their bank, broker, custodian or other nominee with questions regarding procedures for processing the reverse stock split.
Additional information regarding the reverse stock split is available in the definitive proxy statement filed with the U.S. Securities and Exchange Commission on May 8, 2024 by the Company.
About Phio Pharmaceuticals
Phio Pharmaceuticals Corp. (Nasdaq: PHIO) is a clinical stage biotechnology company whose proprietary INTASYL® RNAi technology is designed to make immune cells more effective in killing tumor cells. INTASYL is the only self-delivering RNAi technology focused on immuno-oncology therapeutics. INTASYL drugs precisely target specific proteins that reduce the body's ability to fight cancer, without the need for specialized formulations or drug delivery systems.
For additional information, visit the Company's website, www.phiopharma.com.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements in this press release that are not statements of historical fact are forward-looking statements. Words such as "intend," "believe," "anticipate," "indicate," "plan," "expect," "suggest," "may," "would," "should," "potential," "designed to," "will," "ongoing," "estimate," "forecast," "target," "predict," "could," "continue," or the negative of these terms or other similar references are intended to identify forward-looking statements, although not all forward-looking statements contain these words. These forward-looking statements are based only on our current beliefs, expectations and assumptions and are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Examples of forward-looking statements include statements regarding compliance with the minimum bid price requirement and other applicable Nasdaq continued listing standards and the effect of the reverse stock split, including the estimated number of shares of common stock outstanding after effecting the reverse stock split. Some factors that may cause the Company's actual results to differ materially from those expressed or implied in the forward-looking statements in this press release are described in our Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q under the caption "Risk Factors" and in other filings the Company periodically makes with the SEC. Readers are urged to review these risk factors and to not act in reliance on any forward-looking statements, as actual results may differ from those contemplated by our forward-looking statements. The Company does not undertake to update forward-looking statements to reflect a change in its views, events or circumstances that occur after the date of this release, except as required by law.
Contact:
Phio Pharmaceuticals Corp.
ir@phiopharma.com
PR Contact
Michael Adams
Bridge View Media
adams@bridgeviewmedia.com
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/215152
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