Aeterna Zentaris announces reverse stock split

TORONTO – Aeterna Zentaris Inc. (NASDAQ: NASDAQ: ) (TSX: AEZS), a specialty biopharmaceutical company, announced a share consolidation of its common stock, commonly known as for a reverse stock split.

The merger, which was approved by shareholders on March 12, 2024, will result in a reduction in the number of issued and outstanding common shares from approximately 4.86 million shares to approximately 1.21 million shares, at a ratio of 1 share for every 4 pre-merger shares. .

The Company's common shares are expected to trade post-merger on the Toronto Stock Exchange and the Nasdaq Capital Market around the open of business on May 3, 2024. Completion scheduled for Q2 2024, pending all necessary approvals and conditions.

Registered holders of common shares will receive a letter of transmittal from Computershare Trust Company of Canada, the Company's transfer agent, containing instructions on how to exchange pre-merger shares. The new CUSIP number for the combined common stock is 007975600 and the new ISIN number is CA00079756007.

The share merger is a strategic step in Aeterna Zentaris' planned merger with Ceapro Inc.

Aeterna Zentaris focuses on the development and commercialization of pharmaceuticals and diagnostic products with a focus on unmet medical needs. Their lead product, Macimorelin, is the first and only oral test approved by the U.S. FDA and European Commission for the diagnosis of growth hormone deficiency in adults.

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The information provided in this article is based on Aeterna Zentaris' press release.

Investment Professional Insights

In light of Aeterna Zentaris Inc.'s recent announcement of its share consolidation and impending merger with Ceapro Inc., interested investors and stakeholders are paying close attention to the company's financials and stock performance. Here are some insights based on real-time data from InvestingPro and InvestingPro Tips that can help you gain a deeper understanding of your company’s current situation:

Aeterna Zentaris has a market capitalization of just $9.17 million, reflecting the company's size in the biopharmaceutical industry. Despite challenging financial performance, with a trailing twelve-month PE ratio of -0.54 through Q4 2023, the company holds more cash than debt on its balance sheet, which is a positive sign of liquidity. This is complemented by the fact that its liquid assets exceed short-term debt, providing some cushion against short-term financial commitments.

Investors should be aware of the stock's volatility, as the stock has experienced significant price swings, rising significantly by 34.49% over the past six months. However, the one-year total price return of -37.1% suggests longer-term challenges for the stock. Analysts optimistically predict that Aeterna Zentaris will become profitable this year, which could be a turning point for the company.

InvestingPro Tips suggests that while the company is burning through cash rapidly and has not yet turned a profit in the last twelve months, net profit is expected to grow this year. These insights, along with 10 additional tips available on InvestingPro, can help investors make more informed decisions about Aeterna Zentaris stock.

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To explore these insights further and get the full list of InvestingPro tips for Aeterna Zentaris, please visit the dedicated page: those interested in annual or bi-annual Pro and Pro+ subscriptions, please use the coupon code PRONEWS24 Get an extra 10% off.

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