Avenue Therapeutics Announces Reverse Stock Split
April 24 2024 - 7:30AM
Avenue Therapeutics, Inc. (Nasdaq: ATXI) (“Avenue” or the
“Company”), a specialty pharmaceutical company focused on the
development and commercialization of therapies for the treatment of
neurologic diseases, today announced that it will effect a 1-for-75
reverse split of its issued and outstanding common stock. Avenue
expects its common stock to begin trading on a split-adjusted basis
on the Nasdaq Capital Market as of the commencement of trading on
April 26, 2024 with a new CUSIP number of 05360L403. The ticker
symbol for the Company’s stock will remain “ATXI.”
The reverse stock split was approved on March 6,
2024 by Avenue’s Board of Directors and stockholders representing
approximately 56% of the voting power of Avenue’s outstanding
capital stock, with the authorization to determine the final ratio
(within a specified range) having been granted to the Company’s
Board of Directors. The reverse stock split is intended to bring
the Company into compliance with Nasdaq’s $1.00 per share minimum
bid price requirement for continued listing.
After the effectiveness of the reverse stock
split, the number of outstanding shares of common stock will be
reduced from approximately 44.7 million to approximately 0.6
million, subject to adjustment to give effect to the treatment of
any fractional shares that stockholders would have received in the
reverse stock split. No fractional shares will be issued in
connection with the reverse stock split, and stockholders who would
otherwise be entitled to receive a fractional share will be
entitled to have such fractional share rounded up to the next whole
share. Proportional adjustments will be made to the number of
shares of the Company’s common stock issuable upon exercise or
conversion of the Company’s preferred stock, warrants and equity
awards, as well as the applicable exercise or conversion prices,
and the number of shares reserved for issuance under the Company’s
equity compensation plan.
Avenue’s transfer agent, VStock Transfer, LLC,
is acting as the exchange agent for the reverse stock split. VStock
Transfer, LLC will provide instructions to stockholders regarding
the process for exchanging physical share certificates. Avenue does
not expect that stockholders holding their shares in book-entry
form or through a bank, broker or other nominee need to take any
action in connection with the reverse stock split. Beneficial
holders are encouraged to contact their bank, broker or other
nominee with any procedural questions. Additional information
concerning the reverse stock split can be found in Avenue’s
definitive information statement on Schedule 14C filed with the
Securities and Exchange Commission on March 18, 2024.
About Avenue Therapeutics
Avenue Therapeutics, Inc. (Nasdaq: ATXI) is a
specialty pharmaceutical company focused on the development and
commercialization of therapies for the treatment of neurologic
diseases. It is currently developing three assets including AJ201,
a first-in-class asset for spinal and bulbar muscular atrophy,
BAER-101, an oral small molecule selective GABAA α2/3 receptor
positive allosteric modulator for CNS diseases, and IV tramadol,
which is in Phase 3 clinical development for the management of
acute postoperative pain in adults in a medically supervised
healthcare setting. Avenue is headquartered in Miami, FL and was
founded by Fortress Biotech, Inc. (Nasdaq: FBIO). For more
information, visit www.avenuetx.com.
Forward-Looking Statements
This press release contains predictive or
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. All statements other than
statements of current or historical fact contained in this press
release, including statements that express our intentions, plans,
objectives, beliefs, expectations, strategies, predictions or any
other statements relating to our future activities or other future
events or conditions are forward-looking statements. The words
“anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,”
“intend,” “may,” “plan,” “predict,” “project,” “will,” “should,”
“would” and similar expressions are intended to identify
forward-looking statements. These statements are based on current
expectations, estimates and projections made by management about
our business, our industry and other conditions affecting our
financial condition, results of operations or business prospects.
These statements are not guarantees of future performance and
involve risks, uncertainties and assumptions that are difficult to
predict. Therefore, actual outcomes and results may differ
materially from what is expressed or forecasted in, or implied by,
the forward-looking statements due to numerous risks and
uncertainties. Factors that could cause such outcomes and results
to differ include, but are not limited to, risks and uncertainties
arising from: the fact that we currently have no drug products for
sale and that our success is dependent on our product candidates
receiving regulatory approval and being successfully
commercialized; the possibility that serious adverse or
unacceptable side effects are identified during the development of
our current or future product candidates, such that we would need
to abandon or limit development of some of our product candidates;
our ability to successfully develop, partner, or commercialize any
of our current or future product candidates including AJ201, IV
tramadol, and BAER-101; the substantial doubt raised about our
ability to continue as a going concern, which may hinder our
ability to obtain future financing; the significant losses we have
incurred since inception and our expectation that we will continue
to incur losses for the foreseeable future; our need for
substantial additional funding, which may not be available to us on
acceptable terms, or at all, which unavailability of could force us
to delay, reduce or eliminate our product development programs or
commercialization efforts; our reliance on third parties for
several aspects of our operations; our reliance on clinical data
and results obtained by third parties that could ultimately prove
to be inaccurate, or unreliable, or unacceptable to regulatory
authorities; the possibility that we may not receive regulatory
approval for any or all of our product candidates, or that such
approval may be significantly delayed due to scientific or
regulatory reasons; the fact that even if one or more of our
product candidates receives regulatory approval, they will remain
subject to substantial regulatory scrutiny; the effects of current
and future laws and regulations relating to fraud and abuse, false
claims, transparency, health information privacy and security, and
other healthcare laws and regulations; the effects of competition
for our product candidates and the potential for new products to
emerge that provide different or better therapeutic alternatives
for our targeted indications; the possibility that the government
or third-party payors fail to provide adequate coverage and payment
rates for our product candidates or any future products; our
ability to establish sales and marketing capabilities or to enter
into agreements with third parties to market and sell our product
candidates; our exposure to potential product liability claims;
related to the protection of our intellectual property and our
potential inability to maintain sufficient patent protection for
our technology and products; our ability to maintain compliance
with the obligations under our intellectual property licenses and
funding arrangements with third parties, without which licenses and
arrangements we could lose rights that are important to our
business; the fact that Fortress Biotech, Inc. controls a majority
of the voting power of our outstanding capital stock and has rights
to receive significant share grants annually; our current
noncompliance with certain applicable listing standards of The
Nasdaq Capital Market, which could result in our common stock being
delisted from The Nasdaq Capital Market; and those risks discussed
in our filings which we make with the SEC. Any forward-looking
statements speak only as of the date on which they are made, and we
undertake no obligation to publicly update or revise any
forward-looking statements to reflect events or circumstances that
may arise after the date of this press release, except as required
by applicable law. Investors should evaluate any statements made by
us in light of these important factors.
Contact: Jaclyn Jaffe Avenue Therapeutics, Inc.
(781) 652-4500ir@avenuetx.com
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