BRANFORD, Conn. - Azitra, Inc. (NYSE American: AZTR), a clinical-stage biopharmaceutical company, announced that it will undergo a reverse stock split of its common stock at a 1-for-30 ratio, effective at the start of trading on July 1, 2024.
This decision follows approval from the company's stockholders at a special meeting today, granting the Board of Directors the authority to amend its Second Amended and Restated Certificate of Incorporation to effectuate the reverse split.
The reverse stock split is structured to reduce the number of Azitra's issued common shares from approximately 28.8 million to around 960,155 shares, without altering the par value per share. Shareholders will not receive fractional shares as a result of the split.
Instead, they will be compensated with cash payments for fractional shares based on the average closing sales prices of the common stock on the NYSE American during the five trading days preceding the split, adjusted to reflect the reverse split.
The company's common stock will continue trading on the NYSE American under the ticker symbol AZTR, with the new CUSIP number 05479L 203. Shareholders holding shares through brokerage accounts will see their holdings automatically adjusted to reflect the reverse split. Those with certificated shares are not required to exchange their stock certificates but have the option to do so.
Proportional adjustments will be made to the shares issuable upon exercise or conversion of Azitra’s equity awards and warrants, as well as the applicable exercise price. Shareholders with questions about the reverse stock split can contact the company’s transfer agent or their respective brokers.
This corporate action was detailed in Azitra's definitive proxy statement filed with the Securities and Exchange Commission on June 3, 2024. Further information regarding the reverse stock split is available on the SEC's website and the company's investor relations page.
Azitra is engaged in developing therapies for precision dermatology, focusing on engineered proteins and biotherapeutic products. The company utilizes a proprietary platform, bolstered by AI and machine learning, to screen a microbial library for potential therapeutic candidates, with a current emphasis on genetically engineered strains of S. epidermidis.
This article is based on a press release statement from Azitra, Inc.
In other recent news, Azitra, Inc., a clinical-stage biopharmaceutical company, has announced significant progress in its preclinical trials for two novel treatments. The company has reported encouraging data for ATR-04, a product aimed at treating skin toxicity caused by epidermal growth factor receptor inhibitors (EGFRi).
The research indicates that ATR-04 can significantly reduce the presence of methicillin-resistant Staphylococcus aureus (MRSA) on skin models, as well as lower levels of IL-36γ, a pro-inflammatory cytokine associated with EGFRi-induced skin toxicity.
In addition, Azitra has also shared promising preclinical data on ATR-12, a treatment candidate for Netherton syndrome. ATR-12, a genetically engineered strain of Staphylococcus epidermidis, effectively delivers the LEKTI protein to human skin, which is deficient in individuals with Netherton syndrome.
The treatment has shown potential in reducing protease activity to levels comparable to healthy skin and decreasing levels of IL-36γ, a pro-inflammatory cytokine involved in Netherton syndrome.
These recent developments are part of Azitra's broader focus on precision dermatology, using a proprietary platform with a microbial library of approximately 1,500 unique bacterial strains. The company plans to submit an Investigational New Drug (IND) application to the FDA for a Phase 1b clinical trial for ATR-04 and expects to release initial safety data from the Phase 1b clinical trial for ATR-12 before the end of the year.
InvestingPro Insights
Amidst the strategic corporate action of a reverse stock split, Azitra, Inc. (NYSE American: AZTR) presents a mixed financial landscape. With a market capitalization of just 3.37 million USD, the company's size remains modest.
The recent data reflects a significant revenue growth of 106.53% in the last twelve months as of Q1 2024, showcasing a potential upside in the company's sales performance. However, the growth in revenue is juxtaposed with a challenging profitability outlook, as the company's operating income margin reveals a steep -1574.85%, indicating substantial losses relative to its revenue.
An InvestingPro Tip highlights that Azitra holds more cash than debt on its balance sheet, suggesting a degree of financial flexibility. Conversely, another InvestingPro Tip points out that the company is quickly burning through its cash reserves. This rapid cash consumption, coupled with the fact that analysts do not anticipate Azitra will turn a profit this year, could concern investors about the company's near-term financial health.
The stock's recent performance has seen a sharp decline, with a one-year price total return of -97.25%, reflecting investor sentiment and market reactions to the company's financial positioning and future prospects. Shareholders and potential investors might consider these metrics and insights as they evaluate Azitra's position in the volatile biopharmaceutical market.
For those looking to delve deeper into Azitra's financials and market performance, InvestingPro offers a comprehensive set of additional tips. With a current total of 11 more InvestingPro Tips available for AZTR at https://www.investing.com/pro/AZTR, investors can gain a more nuanced understanding of the company's position. To access these insights and more, readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, enhancing their investment research toolkit.
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