Lipella Pharmaceuticals Inc. (NASDAQ:LIPO), a micro-cap pharmaceutical company with a market capitalization of $3.74 million, announced today that its special stockholders meeting, initially set for today, lacked a quorum for conducting business.
According to InvestingPro data, the company maintains strong liquidity with a current ratio of 2.97, though it faces challenges with rapid cash burn. Consequently, the meeting has been adjourned and rescheduled for December 20, 2024, at 2:00 p.m. Eastern Time.
The adjournment was announced during the meeting after determining the number of shares present in person and by proxy was insufficient for a quorum. The reconvened meeting comes at a challenging time for the company, with InvestingPro analysis showing a significant year-to-date decline of 62% in share price.
The company's principal executive office is located at 7800 Susquehanna St., Suite 505, Pittsburgh, PA 15208, and the meeting will be held virtually. Lipella Pharmaceuticals Inc. has taken this step to ensure that all stockholders have the opportunity to be represented and to vote on matters affecting the company's governance and future operations.
In other recent news, Lipella Pharmaceuticals has initiated a series of strategic moves, including a reverse stock split and a registered direct offering of its common stock. The company aims to raise approximately $1.28 million from the offering, with H.C. Wainwright & Co. serving as the exclusive placement agent. This decision follows the recent approval of a one-for-eight reverse stock split by the company's stockholders during the annual meeting.
The reverse stock split will consolidate every eight shares of existing common stock into one share, affecting the total number of outstanding shares, options, and warrants proportionally. No fractional shares will be issued, and shareholders receiving a fractional share will be compensated with the cash equivalent.
In the midst of these challenges, Lipella reported positive early results from a Phase 2a clinical trial for LP-310, a treatment for Oral Lichen Planus. The company has also initiated a Phase 2b clinical trial for LP-10, a potential remedy for hemorrhagic cystitis, with preliminary approval from the U.S. Food & Drug Administration.
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