Galena Biopharma Inc (NASDAQ:GALE) has received an approval from its board of directors, to conduct a 1-for-20 reverse stock split. The company announced that it had already received approval from its shareholders, at its annual meeting, on October 21, 2016. As such, the reverse stock split would go into effect on November 11, 2016, with the stock CUISP number being update by November 14, 2016.
The CEO of GALE, Mark W. Schwartz, stated that the move was directed towards meeting the minimum bid price requirement, of the NASDAQ capital markets. He claimed that this was in the best interests of the company and its shareholders. The CEO also expressed his confidence in the company’s product pipeline and pointed out that their lead drug candidate GALE-401, is to enter a phase-3 clinical trial next year, which would be pivotal for Galena. He reaffirmed that the move would enable them to be in a better position to advance their clinical programs, in the near future.
Galena noted that the reverse split would effectively reduce over 10.85 million shares of the company’s common stock. The company also announced that there would be no issuance for fractional shares and holders of fractional shares would be awarded cash as compensation. It should be noted here that the approval from the board came on the same day, when the company scheduled its 3Q2016 financial results.
GALE has announced that it would files its 3Q2016 financial results on November 9, 2016. The financial statements would also be accompanied by a corporate update, from the company. The filing is would be made available after the markets close on the stated day. Moreover, Galena has also scheduled a conference call to be held at 2:00 pm, to discuss the financial results, on the same day. A live webcast would be made available through the company’s website, under the events section.
Galena Biopharma Inc (NASDAQ:GALE) lost 16.33% in terms of its share value, during the November 1 trading session, on a trade volume of 7.54 million, to close at $0.192 per share.