SAN DIEGO - Kintara Therapeutics, Inc. (NASDAQ: KTRA), a biopharmaceutical company, announced today that its Board of Directors has authorized a reverse stock split at a ratio of 1-for-35. This adjustment is set to take effect on the Nasdaq Capital Market on October 17, 2024, as the company reemerges under the name TuHURA Biosciences, Inc., trading with the ticker symbol "HURA" and a new CUSIP number 898920 103.
The decision for the reverse stock split followed a stockholder vote on October 4, 2024, which permitted the Board to select a ratio within the range of 1-for-20 to 1-for-40. The Board finalized the 1-for-35 ratio on the same day. As a consequence of this action, the total outstanding shares of Kintara's common stock will decrease from approximately 55.6 million to about 1.6 million. The par value per share will remain $0.001, and the authorized share count will be unaffected. The reverse stock split aims to proportionally adjust the holdings of all stockholders, with the company issuing additional shares as needed to round fractional shares up to a whole share.
This move comes ahead of Kintara's anticipated merger with TuHURA Biosciences, Inc., which, upon completion, is expected to result in approximately 42.0 million shares of common stock for the combined entity. Equinity Trust Company, LLC is serving as the exchange and transfer agent for the reverse stock split. Shareholders with shares held in book-entry form or through brokerage accounts need not take any action, while beneficial holders are advised to consult their financial institutions for procedural inquiries.
TuHURA Biosciences, soon to be the new identity of the merged companies, is advancing a Phase 3 registration-stage immuno-oncology pipeline, including a personalized cancer vaccine candidate, IFx-2.0, and novel bi-functional antibody drug conjugates (ADCs) targeting Myeloid Derived Suppressor Cells.
Kintara, meanwhile, has been developing cancer therapies for patients with significant unmet medical needs, with its lead program REM-001 Therapy for cutaneous metastatic breast cancer (CMBC) showing a clinical efficacy rate of 80% complete responses in evaluable lesions.
The information in this article is based on a press release statement.
In other recent news, Kintara Therapeutics has amended the terms of its impending merger with TuHURA Biosciences. The biopharmaceutical company has waived certain prerequisites, allowing the merger to proceed without the need for stockholder approval for the company's reincorporation from Nevada to Delaware, and an increase in authorized shares of Kintara's common stock. The merger is expected to result in TuHURA becoming a wholly-owned subsidiary of Kintara.
Kintara's shareholders had previously approved a reverse stock split ranging from 1-for-20 to 1-for-40 and the issuance of Contingent Value Rights (CVRs) to its stockholders. The company plans to effectuate a reverse stock split at a ratio of 1-for-35 before finalizing the merger with TuHURA Biosciences.
As part of their recent developments, Kintara's REM-001 therapy for cutaneous metastatic breast cancer is under study with promising results reported so far. Similarly, TuHURA Biosciences has secured exclusive rights to an advanced immunotherapy asset, KVA12123, currently in clinical trials. The company has also reported positive results from a Phase 1b trial of its leading cancer vaccine candidate, IFx-2.0, conducted in collaboration with Kintara Therapeutics.
In other corporate developments, Kintara held its Annual Meeting of Stockholders, where four directors were elected, the compensation of the company's executive officers was approved, and the appointment of Marcum LLP as Kintara's independent registered public accounting firm for the fiscal year ending June 30, 2024, was ratified.
InvestingPro Insights
As Kintara Therapeutics (NASDAQ: KTRA) prepares for its reverse stock split and merger with TuHURA Biosciences, investors should consider some key financial metrics and insights from InvestingPro.
The company's market capitalization stands at a modest $12.25 million, reflecting its current status as a small-cap biopharmaceutical firm. This valuation could change significantly post-merger, given the anticipated increase in outstanding shares to approximately 42.0 million for the combined entity.
InvestingPro data shows that Kintara's stock has experienced a strong return over the last month, with a 34.88% price increase. This recent positive momentum aligns with the company's strategic moves, including the reverse stock split and upcoming merger. Additionally, the stock has seen a remarkable 111.95% price total return over the past six months, indicating growing investor interest in the company's potential.
However, it's crucial to note that Kintara is currently not profitable, with an adjusted operating income of -$8.45 million over the last twelve months. This financial situation underscores the importance of the upcoming merger and the potential of TuHURA Biosciences' Phase 3 immuno-oncology pipeline in driving future growth and profitability.
Two relevant InvestingPro Tips for Kintara are that the company holds more cash than debt on its balance sheet, and its liquid assets exceed short-term obligations. These factors could provide some financial flexibility as the company navigates through the merger process and continues its research and development efforts.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Kintara Therapeutics, providing a deeper understanding of the company's financial health and market position.
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