AlloVir, Inc. (NASDAQ:ALVR), a biotechnology company specializing in biological products, announced today that it has completed a reverse stock split of its common stock at a 1-for-23 ratio. The move comes as the company's stock has declined nearly 50% over the past six months, according to InvestingPro data.
The reverse stock split was effective as of 4:05 p.m. Eastern Time today, following approval from the company's Board of Directors and its stockholders at a Special Meeting on Sunday. InvestingPro analysis indicates the stock is currently trading below its Fair Value, with 8 additional key insights available to subscribers.
The reverse stock split consolidates every twenty-three shares of issued and outstanding common stock into one share. This action was taken without the need for stockholders to take any action themselves. The reverse stock split is expected to proportionally adjust the exercise prices and the number of shares underlying AlloVir's outstanding equity awards, as well as certain existing agreements.
Stockholders who held fractional shares as a result of the consolidation will receive a cash payment instead of fractional shares. The payment will be equivalent to the fractional share multiplied by the closing sales price of AlloVir’s common stock on The Nasdaq Capital Market as of today, which is the last trading day before the reverse stock split took effect.
The company's common stock will continue to trade on The Nasdaq Capital Market under the ticker symbol "ALVR," and trading on a split-adjusted basis is set to commence when the market opens tomorrow. The new CUSIP number for AlloVir's common stock following the reverse stock split is 019818202.
The reverse stock split does not affect the total number of authorized shares of common stock or the par value per share. The measure aims to increase the per-share trading price of AlloVir’s common stock, potentially improving marketability and compliance with Nasdaq's listing requirements.
In other recent news, AlloVir, Inc. has announced a reverse stock split effective January 16, with the split executed at a ratio of one-for-twenty-three. This move comes as part of the company's strategy leading up to a proposed merger with Kalaris Therapeutics, Inc., as detailed in filings with the Securities and Exchange Commission. Recent developments also include a leadership change with Vikas Sinha stepping into the role of Chief Executive Officer, following the departure of former CEO, Diana Brainard. Sinha brings over two decades of experience in the life sciences industry to his new role.
Despite facing profitability challenges, AlloVir maintains a strong liquidity position. The reverse stock split and leadership change are strategic initiatives aimed at addressing these challenges. According to InvestingPro analysis, AlloVir's stock appears undervalued against its Fair Value. Investors can expect AlloVir's next earnings report on February 12, 2025, providing a further update on the company's financial health.
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