Galecto, Inc. (NASDAQ:GLTO), a micro-cap biotech company valued at $7.36 million, saw its Chief Executive Officer Hans T. Schambye recently sell 1,341 shares of the company's common stock. The shares were sold at $5.60 each, amounting to $7,509. According to InvestingPro, the stock has shown strong momentum with a 19% gain over the past week, though it remains significantly below its 52-week high of $23.50. This sale was made to cover tax obligations related to the vesting of restricted stock units (RSUs), as mandated by Galecto's 2020 Equity Incentive Plan.
In addition to the sale, Schambye acquired 2,640 shares of common stock through the settlement of RSUs, which were scheduled to vest on January 3, 2025. These RSUs, which represent the right to receive shares upon vesting, were part of an award granted on January 3, 2024.
Furthermore, Schambye was granted stock options to acquire 16,400 shares at an exercise price of $5.70 per share. These options will begin vesting on January 3, 2026, with 25% becoming exercisable on that date and the remainder vesting in equal monthly installments over the following 36 months, contingent on his continued service with the company.
Following these transactions, Schambye holds a total of 3,397 shares of Galecto's common stock directly.
In other recent news, Galecto has made significant strides in the oncology and liver disease sectors, with the acquisition of global rights to BRM-1420 from Bridge Medicine. This novel therapy targets multiple genetic subsets of Acute Myeloid Leukemia (AML) and is expected to meet the needs of approximately 30% of AML patients. The company plans to file an Investigational New Drug (IND) application for BRM-1420 around the end of 2025. Analysts from Oppenheimer have adjusted their price target for Galecto to $10, following this strategic acquisition.
In addition, Galecto has executed a 1-for-25 reverse stock split, reducing its outstanding common shares from approximately 27.1 million to around 1.1 million. This move aligns with the company's efforts to adjust its capital structure. The company has also appointed Dr. Amy Wechsler to its Board of Directors, a move that is expected to provide valuable industry knowledge and leadership skills to the company's growth and development strategies.
Furthermore, Galecto has announced that its quarterly operating expenses are likely to be in the range of approximately $2.5 to $3.0 million. This projection is expected to extend the company's cash runway into 2026, providing a solid financial foundation for its research and development activities in the coming years. These recent developments highlight Galecto's ongoing commitment to its strategic focus and financial stability.
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