WARRINGTON, PA — Windtree Therapeutics, Inc. (NASDAQ: WINT), a biotechnology firm, has declared a significant adjustment to its stock structure through a 1-for-18 reverse stock split. This strategic move, set to be effective as of 11:59 p.m. Eastern Time on April 19, 2024, aims to elevate the company’s market price per share to meet The Nasdaq Capital Market’s minimum bid price requirement of $1.00. Trading on a split-adjusted basis will commence on April 22, 2024, under the same ticker symbol “WINT” but with a new CUSIP number, 97382D 501.
The decision for the reverse stock split came after obtaining approval from the company’s stockholders at a special meeting held on April 10, 2024. This action will consolidate every eighteen shares of issued and outstanding common stock into one single share, effectively reducing the total number of outstanding shares from approximately 9.2 million to about 0.5 million. It’s important to note that the par value of $0.001 per share remains unchanged.
The restructuring is anticipated to not only enhance the company’s compliance with Nasdaq’s listing standards but also to potentially increase the attractiveness of Windtree’s stock to a broader range of investors. By increasing the market price per share, the company aims to signal stability and growth potential to the market, which can be particularly vital for attracting institutional investors who may have policies against investing in lower-priced stocks.
Proportional adjustments will be made to Windtree’s financial instruments, including its senior convertible notes and Series B Convertible Preferred Stock, as well as to the terms of outstanding restricted stock units, stock options, and warrants. This ensures that the reverse stock split is equitable across all forms of equity, maintaining the relative ownership percentages of all shareholders, except for adjustments due to rounding of fractional shares to the nearest whole share.
Shareholders need not take any specific action to receive their post-split shares. Those holding shares through banks, brokers, or other nominees will see their holdings automatically adjusted to reflect the reverse stock split, in line with each institution’s procedures.
Windtree Therapeutics’ maneuver is a reflection of a broader strategy employed by companies seeking to align more closely with stock exchange requirements and improve stock market performance. While reverse stock splits are often viewed with caution, as they can sometimes be indicative of underlying challenges, they can also provide companies with the opportunity to reset their market perception and pave the way for future growth.
This development comes at a time when the biotech industry faces increasing scrutiny over market valuations and the pressure to deliver tangible results from their research pipelines. For Windtree Therapeutics, this move is a clear indication of their commitment to maintaining a strong presence on the Nasdaq Capital Market and to enhancing shareholder value in the long run. As the company continues to navigate the complexities of the biotech sector, this reverse stock split could be a pivotal step in solidifying its financial foundation and advancing its mission to develop life-saving therapies.
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