First Wave BioPharma, Inc. Announces Reverse Stock Split
August 25 2022 - 12:00PM
First Wave BioPharma, Inc. (NASDAQ:FWBI) (“First Wave BioPharma” or
the “Company”), a clinical-stage biopharmaceutical company
specializing in the development of targeted, non-systemic therapies
for gastrointestinal diseases, today announced that it intends to
effect a reverse stock split of its common stock at a ratio of 1
post-split share for every 30 pre-split shares. First Wave’s common
stock will continue to be traded on the NASDAQ Capital Market under
the symbol FWBI and will begin trading on a split-adjusted basis
when the market opens on Friday, August 26, 2022, under a new CUSIP
number, 33749P200.
At the effective time of the reverse stock
split, every thirty shares of First Wave’s issued and outstanding
common stock will be converted automatically into one issued and
outstanding share of common stock, with no corresponding reduction
in the number of authorized shares of common stock, and without any
change in the par value per share. Stockholders holding shares
through a brokerage account will have their shares automatically
adjusted to reflect the 1-for-30 reverse stock split. It is not
necessary for stockholders holding shares of the Company’s common
stock in certificated form to exchange their existing stock
certificates for new stock certificates of the Company in
connection with the reverse stock split, although stockholders may
do so if they wish.
The reverse stock split will affect all
stockholders uniformly and will not alter any stockholder’s
percentage interest in the Company’s equity, except to the extent
that the reverse stock split would result in a stockholder owning a
fractional share. No fractional shares will be issued in connection
with the reverse split. Stockholders who would otherwise be
entitled to receive a fractional share will instead receive a cash
payment based on today’s closing price of the Company’s common
stock as reported on Nasdaq. The reverse stock split will reduce
the number of shares of First Wave’s common stock outstanding from
approximately 42 million shares to approximately 1.4 million
shares. Proportional adjustments will be made to the number of
shares of First Wave’s common stock issuable upon exercise or
conversion of First Wave’s equity awards, convertible preferred
stock and warrants, as well as the applicable exercise price.
Stockholders with shares in brokerage accounts should direct any
questions concerning the reverse stock split to their broker; all
other stockholders may direct questions to the Company’s transfer
agent, Colonial Stock Transfer, at 801-355-5740.
At the annual meeting of stockholders held on
Thursday, August 25, 2022, First Wave’s stockholders granted the
Company’s Board of Directors the discretion to effect a reverse
stock split of First Wave’s outstanding common stock through an
amendment to its Certificate of Incorporation at a ratio of not
less than 1-for-10 and not more than 1-for-40, such ratio to be
determined by the Company’s Board of Directors. Among other things,
the reverse stock split is intended to increase the per share
trading price of the common stock to satisfy the minimum bid price
requirement for continued listing on The Nasdaq Capital Market
(Rule 5550(a)(2)).
About First Wave BioPharma, Inc.
First Wave BioPharma is a clinical-stage
biopharmaceutical company specializing in the development of
targeted, non-systemic therapies for gastrointestinal (GI)
diseases. The Company is currently advancing a therapeutic
development pipeline with multiple clinical stage programs built
around its two proprietary technologies – the biologic adrulipase,
a recombinant lipase enzyme designed to enable the digestion of
fats and other nutrients, and niclosamide, an oral small molecule
with anti-inflammatory properties. First Wave is advancing two
Phase 2 clinical programs built around adrulipase for the treatment
of exocrine pancreatic insufficiency (FW-EPI) in patients with
cystic fibrosis (CF) and chronic pancreatitis (CP). In developing
adrulipase, First Wave is seeking to provide CF and CP patients
with a safe and effective therapy to control EPI that is non-animal
derived and offers the potential to dramatically reduce their daily
pill burden. The company is also advancing multiple programs
involving niclosamide, including FW-UP for ulcerative proctitis and
ulcerative proctosigmoiditis, FW-UC for ulcerative colitis, and
FW-CD for Crohn’s disease. First Wave BioPharma is headquartered in
Boca Raton, Florida. For more information visit
www.firstwavebio.com.
Forward-Looking Statements
This press release may contain certain
statements relating to future results which are forward-looking
statements. These forward-looking statements are subject to risks
and uncertainties including, among other things, the completion of
the private placement, the satisfaction of customary closing
conditions related to the private placement and the intended use of
proceeds from the private placement. It is possible that the
Company’s actual results and financial condition may differ,
possibly materially, from the anticipated results and financial
condition indicated in these forward-looking statements, depending
on factors including risks and uncertainties related to market
conditions whether results obtained in preclinical and nonclinical
studies and clinical trials will be indicative of results obtained
in future clinical trials; whether preliminary or interim results
from a clinical trial will be indicative of the final results of
the trial; the size of the potential markets for the Company’s drug
candidates and its ability to service those markets; the effects of
the First Wave Bio, Inc. acquisition and its announcement on the
Company’s business, operating results and financial prospects; the
integration of the First Wave Bio, Inc. business with the Company’s
own business; and the Company’s current and future capital
requirements and its ability to raise additional funds to satisfy
its capital needs. Additional information concerning the Company
and its business, including a discussion of factors that could
materially affect the Company’s financial results are contained in
the Company’s Annual Report on Form 10-K for the year ended
December 31, 2021 under the heading “Risk Factors,” as well as the
Company’s subsequent filings with the Securities and Exchange
Commission. All forward-looking statements included in this press
release are made only as of the date of this press release, and we
do not undertake any obligation to publicly update or correct any
forward-looking statements to reflect events or circumstances that
subsequently occur or of which we hereafter become aware.
For more information:First Wave BioPharma,
Inc.777 Yamato Road, Suite 502Boca Raton, FL 33431Phone: (561)
589-7020info@firstwavebio.com
Media contact:Tiberend Strategic Advisors,
Inc.David Schemelia(609) 468-9325dschemelia@tiberend.com
First Wave BioPharma (NASDAQ:FWBI)
Historical Stock Chart
From Apr 2024 to May 2024
First Wave BioPharma (NASDAQ:FWBI)
Historical Stock Chart
From May 2023 to May 2024