NEWTOWN, PA — Traws Pharma, Inc. (Nasdaq: TRAW) recently concluded its 2024 Special Meeting of Stockholders with significant decisions impacting the company’s capital structure. Shareholders approved all proposals outlined in the August 8, 2024, definitive proxy statement, marking a pivotal step for the pharmaceutical firm.
Key among the approvals was the authorization for issuing shares of common stock through the conversion of Series C Non-Voting Convertible Preferred Stock. Additionally, shareholders agreed to amend the Tenth Amended and Restated Certificate of Incorporation, doubling the authorized shares of common stock from 125 million to 250 million.
A critical decision from the meeting was the approval of a reverse stock split, ranging between a one-for-fifteen and one-for-twenty-five ratio. The Board of Directors opted for a one-for-twenty-five ratio, effectuating the split on September 16, 2024, with trading on a split-adjusted basis beginning September 23, 2024. This reverse split will significantly reduce the number of outstanding common shares from approximately 45.67 million to 1.83 million.
The reverse stock split also entails adjustments to the exercise price and the number of shares for all outstanding options, warrants, restricted stock units, and convertible preferred stock. Importantly, no fractional shares will result from the split; stockholders will receive one full share for any fractional entitlement.
Following the split, Traws Pharma’s common stock will continue trading on the Nasdaq Capital Market under the symbol “TRAW,” with a new CUSIP number, 68232V 884, reflecting the changes. Shareholders will receive guidance from EQ Shareowner Services regarding the exchange of share certificates, while electronic positions will be updated automatically.
These strategic moves aim to bolster Traws Pharma’s market position and improve its share value. The alignment of stock structure with corporate growth objectives is expected to enhance shareholder value and attract potential investors by presenting a streamlined and robust financial foundation.
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