In a recent SEC filing, MiNK Therapeutics, Inc., a biopharmaceutical company, declared the implementation of a reverse stock split of its common stock. The decision was made official following a special meeting of stockholders on January 17, 2025, where the proposal received majority approval. According to InvestingPro data, the company, currently valued at $34.8 million, has been facing financial challenges with negative EBITDA of -$14.07 million in the last twelve months.
The reverse stock split, set at a ratio of 1-for-10, is scheduled to take effect at the start of trading on January 28, 2025. As a result, the common stock will trade on a post-split basis under a new CUSIP number. This corporate action comes after stockholders of record as of December 16, 2024, voted in favor of the amendment to the company's Certificate of Incorporation to enact the reverse split. InvestingPro analysis reveals concerning financial health indicators, including a current ratio of 0.89, suggesting short-term obligations exceed liquid assets. Subscribers can access 8 additional key ProTips about INKT's financial position.
The stockholder's vote yielded 26,500,274 votes in favor, 1,026,255 against, and 56,013 abstentions, with no broker non-votes, ensuring a quorum was met and the proposal passed. The Certificate of Amendment to the Amended and Restated Certificate of Incorporation was filed with the Secretary of State of Delaware, formalizing the reverse stock split.
MiNK Therapeutics, also known by its organization name 03 Life Sciences, is incorporated in Delaware and is recognized under the Standard Industrial Classification code for Biological Products, excluding diagnostic substances. The company, formerly known as AgenTus Therapeutics, Inc., changed its name on January 12, 2021.
The filing did not disclose the reasons for the reverse stock split, but such actions are typically aimed at boosting the stock's market price, improving marketability, and meeting stock exchange listing requirements. While the stock has shown strong momentum with a 26.27% YTD return, InvestingPro's Fair Value analysis suggests the stock is currently overvalued. Analyst price targets range from $4 to $9, with a strong buy consensus. The company's common stock is listed on The Nasdaq Stock Market under the trading symbol INKT. For comprehensive analysis, investors can access the detailed Pro Research Report, available for INKT and 1,400+ other US stocks through InvestingPro.
This news is based on a press release statement and reflects the company's current regulatory disclosures.
In other recent news, MiNK Therapeutics has made significant strides in its ongoing trials and financial performance. The biopharmaceutical company reported a reduced net loss of $1.8 million in its third-quarter 2024 financial results, a substantial improvement from the $5.1 million loss in the same quarter the previous year. This financial leap was attributed to a nearly 60% year-over-year reduction in operational costs.
Baird, a financial firm, recently adjusted its price target for MiNK Therapeutics to $4 from $8 while maintaining an Outperform rating. This adjustment was based on the company's disclosed financials and updates on its research pipeline. Notably, MiNK Therapeutics' ongoing gastric cancer trials have seen robust enrollment, with results expected to be presented at an upcoming medical conference.
The company's lead program, Agent 797, is showing promising efficacy signals in its Phase 2 trial. Additionally, MiNK Therapeutics is advancing its MiNK-215 program towards an IND, with a trial on graft-versus-host disease planned for the following year. Dr. Robert Kadlec recently joined the company's board, bringing expertise in public health and biodefense, and the company announced a collaboration with Autonomous Therapeutics to target metastatic cancer cells.
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