Previously approved reverse stock split to be
implemented on Friday, October 6, 2017
Soleno Therapeutics, Inc. (NASDAQ:SLNO), a clinical-stage
biopharmaceutical company developing novel therapeutics for the
treatment of rare diseases, today announced that a reverse stock
split of all of Soleno’s outstanding common shares at an exchange
ratio of 1-for-5 will take effect on October 6, 2017.
Beginning with the opening of trading on October 6, 2017, the
Company's common stock will trade on a split-adjusted basis.
Soleno’s shareholders and Board of Directors had previously
approved a reverse stock split of between 1-for-2 and
1-for-10.
“We are appreciative of the previous support
expressed by our shareholders in granting our board the authority
to implement a reverse split,” said Anish Bhatnagar, M.D., Chief
Executive Officer of Soleno. “Following thorough
consideration, the board determined that a reverse split of the
Company's common shares at an exchange ratio of 1-for-5 is in the
best interest of shareholders. Importantly, implementing the
reverse split could be an effective means of regaining compliance
with the bid price requirement for continued listing of our common
stock on NASDAQ. In addition, a higher stock price, which may
be achieved through the reverse split, could help our stock trade
more in line with the Company's peers.”
Upon the effectiveness of the reverse stock
split, each five shares of the Company's issued and outstanding
common stock will be automatically combined and converted into one
issued and outstanding share of common stock, par
value $0.001 per share. As a result of the reverse split,
there will be approximately 10.4 million shares of common stock
issued and outstanding. The reverse stock split will not affect any
shareholder's ownership percentage of Soleno's common
shares. The common shares will trade under a new CUSIP number,
834203 200, effective October 6, 2017. All options,
warrants and convertible securities of the Company outstanding
immediately prior to the reverse stock split will be adjusted.
About PWS
PWS is a rare and complex genetic
neurobehavioral/metabolic disorder affecting appetite, growth,
metabolism, cognitive function and behavior. The committee on
genetics of the American Academy of Pediatrics states PWS affects
both genders equally and occurs in people from all geographic
regions: its estimated incidence is one in 15,000 to 25,000 live
births. This disorder is typically characterized by hyperphagia, a
chronic feeling of insatiable hunger, behavioral problems,
cognitive disabilities, low muscle tone, short stature (when not
treated with growth hormone), the accumulation of excess body fat,
developmental delays, and incomplete sexual development.
Hyperphagia, in the absence of effective limitations to
access to food, can lead to morbid obesity. In a global survey
conducted by the Foundation for Prader-Willi Research, 96.5% of
respondents (parent and caregivers) rated hyperphagia, which is the
unrelenting hunger that severely diminishes the quality of life for
patients and their families, as the most important or a very
important symptom to be relieved by a new medicine. There are
currently no approved therapies to treat the hyperphagia/appetite,
metabolic, cognitive function, or behavioral aspects of the
disorder.
About Diazoxide Choline
Controlled-Release Tablet
Diazoxide choline controlled-release tablet is a
novel, proprietary controlled-release, crystalline salt formulation
of diazoxide, which is administered once-daily. The parent
molecule, diazoxide, as an oral suspension, has been used for
decades in thousands of patients in a few rare diseases in
neonates, children and/or adults, but not in PWS. Soleno
conceived of and is pursuing an extensive patent portfolio relating
to various aspects of the therapeutic use of diazoxide and DCCR in
patients with PWS. The DCCR development program is supported by
positive data from two completed Phase II clinical studies and five
completed Phase I clinical studies in various metabolic
indications, as well as a pilot study in PWS patients. In the
PWS pilot study, DCCR showed promise in addressing the hallmark
symptoms of PWS, most notably hyperphagia. DCCR has received
Orphan Drug Designation from the US FDA for the treatment of
PWS.
About Soleno Therapeutics,
Inc.
Soleno Therapeutics, Inc. (Soleno) is focused on
the development and commercialization of novel therapeutics for the
treatment of rare diseases. The company is currently
advancing its lead candidate, DCCR, a once-daily oral tablet for
the treatment of PWS, into a Phase III clinical development program
at the end of 2017. Soleno, through its wholly owned
subsidiary, Capnia, Inc., continues to market Capnia’s innovative
medical device, the CoSense® End-Tidal Carbon Monoxide (ETCO)
monitor, which measures ETCO and is used by hospitals to detect
hemolysis in newborns. It is expected that CoSense will be
monetized and will not be a focus for the company in the long
term.
For more information, please visit
www.soleno.life.
Forward-Looking Statements
This press release contains forward-looking
statements that are subject to many risks and uncertainties.
Forward-looking statements include statements regarding our
intentions, beliefs, projections, outlook, analyses or current
expectations concerning, among other things, our ability to
initiate the Phase III clinical development program of DCCR in PWS
by the end of 2017.
We may use terms such as "believes,"
"estimates," "anticipates," "expects," "plans," "intends," "may,"
"could," "might," "will," "should," "approximately" or other words
that convey uncertainty of future events or outcomes to identify
these forward-looking statements. Although we believe that we have
a reasonable basis for each forward-looking statement contained
herein, we caution you that forward-looking statements are not
guarantees of future performance and that our actual results of
operations, financial condition and liquidity, and the development
of the industry in which we operate may differ materially from the
forward-looking statements contained in this presentation. As a
result of these factors, we cannot assure you that the
forward-looking statements in this presentation will prove to be
accurate. Additional factors that could materially affect actual
results can be found in Soleno’s Form 10-Q filed with the
Securities and Exchange Commission on August 11, 2017, including
under the caption titled "Risk Factors." Soleno expressly disclaims
any intent or obligation to update these forward-looking
statements, except as required by law.
Contact:Brian RitchieLifeSci Advisors,
LLC212-915-2578
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