SAN DIEGO - Cidara Therapeutics, Inc. (NASDAQ:CDTX), a biotechnology firm, announced today that it has implemented a reverse stock split of its common stock at a 1-for-20 ratio. The stock split will take effect at 5 p.m. ET on Tuesday, with split-adjusted trading to commence at market open on Wednesday, April 24, 2024.
The decision follows approval from the company's stockholders at a special meeting on April 4, 2024, and subsequent ratification by the Board of Directors on April 12, 2024.
The reverse stock split is intended to consolidate 20 shares of existing common stock into one single share, reducing the total number of shares outstanding and increasing the per-share price accordingly.
The company's common stock will continue to be traded on the Nasdaq Capital Market under the ticker symbol CDTX but will be assigned a new CUSIP number, 171757206, effective from April 24, 2024.
As a result of the reverse stock split, the number of shares issuable upon the conversion of outstanding preferred stock and the exercise or vesting of stock options, restricted stock units, and warrants will be adjusted proportionately.
Similarly, the conversion and exercise prices for these securities will be proportionately increased. No fractional shares will be issued; instead, shareholders who would be entitled to a fractional share will receive a cash payment.
The reverse stock split affects all common stockholders proportionally and does not alter any stockholder's percentage ownership in the company, except in cases where fractional shares result in cash settlement.
For shareholders with physical stock certificates, the company's transfer agent, Equiniti Trust Company, will provide instructions on exchanging those certificates for book-entry shares representing the post-split amount.
Cidara Therapeutics utilizes its Cloudbreak® platform to develop drug-Fc conjugate (DFC) immunotherapies, aimed at improving care for patients with serious diseases. The company has also received FDA and EC approval for its antifungal agent REZZAYO® (rezafungin for injection).
This announcement is based on a press release statement and does not include any speculative content regarding the company's future performance or broader market implications.
InvestingPro Insights
In light of Cidara Therapeutics' recent reverse stock split, investors might be interested in the company's current financial health and market performance. According to real-time data from InvestingPro, Cidara Therapeutics has a market capitalization of $61.71 million and is trading at a high Price / Book multiple of 7.68 as of the last twelve months leading up to Q3 2023.
Despite a challenging revenue growth rate of -7.75% during the same period, the company holds more cash than debt on its balance sheet, which can be a sign of financial stability.
InvestingPro Tips highlight that two analysts have revised their earnings upwards for the upcoming period, potentially signaling an optimistic outlook on the company's future performance. However, it's important to note that analysts do not expect Cidara Therapeutics to be profitable this year, and the stock has experienced a significant downturn over the last week with a price total return of -17.42%.
For investors looking to dive deeper into Cidara Therapeutics' financials and stock performance, additional InvestingPro Tips are available on the platform. With the use of the coupon code PRONEWS24, readers can receive an extra 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking comprehensive analytics and insights. There are currently 9 additional InvestingPro Tips listed for Cidara Therapeutics, which could guide investment decisions and provide a clearer picture of the company's prospects.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.