ImmunoCellular Therapeutics Ltd (NYSEMKT:IMUC) announced that at the Special Meeting of Stockholders held on November 14, 2016, ImmunoCellular’s stockholders voted to approve a reverse stock split of the Company’s issued and outstanding common stock. Upon effectiveness of the reverse stock split, every forty (40) shares of ImmunoCellular common stock will be converted into one (1) share of common stock. Concurrently, the authorized number of shares of the Company’s common stock will be reduced from 249 million to 25 million.
In addition, the reverse stock split will effect a reduction in the number of shares of common stock issuable upon the exercise of stock options or warrants outstanding immediately prior to the effectiveness of the reverse stock split, with corresponding increases in the exercise prices of such stock options and warrants. Concurrently, ImmunoCellular will effect a one-for-forty reverse split of its listed warrants that are trading on the NYSE MKT under the symbol IMUC.WS, such that every forty (40) listed warrants will be combined into a listed warrant to purchase one (1) share of common stock at an exercise price of $7.68 per share.
The reverse stock split is intended to enable ImmunoCellular to regain compliance with the minimum bid price required for continued listing on the NYSE MKT as well as to provide a sufficient level of authorized shares of common stock available for issuance and increase the acceptability of the Company’s common stock to investors.
Andrew Gengos, ImmunoCellular’s Chief Executive Officer, commented: “The management and Board express our gratitude to our stockholders for voting in favor of the reverse stock split, which we undertook with the goal of strengthening our ability to continue to advance our immune-oncology pipeline and technology toward next value inflection points, including the execution of our phase 3 registration trial for ICT-107.”
No fractional shares will be issued in connection with the reverse stock split. A stockholder who otherwise would have been entitled to receive a fractional share of stock as a result of the reverse stock split will instead receive cash in lieu of fractional shares. No fractional listed warrants will be issued in connection with the listed warrant reverse split. All fractional listed warrants will be rounded to the nearest whole listed warrant.
The reverse stock split will affect all stockholders proportionately and will not affect any stockholder’s percentage ownership of ImmunoCellularshares (except to the extent that the reverse stock split would result in some of the stockholders receiving cash in lieu of fractional shares).
The Company expects the reverse stock split to become effective at 5:00 p.m. Eastern time on November 18, 2016. When the market opens on November 21, 2016, ImmunoCellular’s common stock and listed warrants will begin trading on the NYSE MKT on a split-adjusted basis. There will be no change in the Company’s NYSE MKT ticker symbols (IMUC, IMUC.WS) as a result of the reverse stock split. The new CUSIP number that will be applicable to the Company’s common stock after the reverse stock split is 452536204. The new CUSIP number that will be applicable to the Company’s listed warrants after the reverse stock split is 452536121. (Original Source)
On the ratings front, Maxim Group analyst Jason McCarthy reiterated a Hold rating on IMUC, in a report issued on November 11. According to TipRanks.com, McCarthy has a yearly average loss of 9.3%, a 31% success rate, and is ranked #4066 out of 4223 analysts.
ImmunoCellular Therapeutics Ltd. is a Los Angeles-based clinical-stage company that develops immune-based therapies for the treatment of brain and other cancers. ImmunoCellular’s pipeline includes: ICT-121, a dendritic cell immunotherapy targeting the CD133 antigen on stem cells in recurrent glioblastoma; ICT-140, a dendritic cell immunotherapy targeting antigens on ovarian cancer stem cells; and the Stem-to-T-cell research program which engineers the patient’s hematopoietic stem cells to generate antigen-specific cancer-killing T-cells.