Company Update (NASDAQ:ACUR): Acura Pharmaceuticals, Inc. Announces 1-for-5 Reverse Stock Split
Acura Pharmaceuticals, Inc. (NASDAQ:ACUR), announced that it will effect a 1-for-5 reverse stock split of its common stock. At a special meeting of the Company’s stockholders held earlier today, the stockholders approved an amendment to the Company’s Certificate of incorporation to effect the reverse stock split at one of five ratios. The Board of Directors approved the implementation of a reverse stock split and determined the appropriate reverse stock split ratio to be 1-for-5. The 1-for-5 reverse stock split will be effective on August 27, 2015, and the Company’s common stock will begin trading on a split-adjusted basis on August 28, 2015.
The reverse stock split will reduce the number of shares of the Company’s common stock currently outstanding from approximately 59 million shares to approximately 11.80 million shares. Proportionate adjustments will be made to (i) the per share exercise price and the number of shares of common stock that may be purchased upon exercise of outstanding stock options granted by the Company and warrants issued by the Company, (ii) the number of shares to be issued under restricted stock units, and (iii) the number of authorized shares of common stock reserved for future issuance under the Company’s 1998 Stock Option Plan, 2008 Stock Option Plan and 2014 Restricted Stock Unit Award Plan. The number of authorized shares of the Company’s common stock will remain 100 million shares.
The reverse stock split is intended to increase the market price per share of the Company’s common stock to allow the Company to maintain the listing of its common stock on The NASDAQ Capital Market. The Company’s common stock will continue to trade on The NASDAQ Capital Market under the symbol “ACUR.” A new CUSIP number of 00509L 802 has been assigned to the common stock in connection with the reverse stock split. (Original Source)
Shares of Acura closed today at $0.58, down $0.04 or 6.18%. ACUR has a 1-year high of $1.35 and a 1-year low of $0.41. The stock’s 50-day moving average is $0.76 and its 200-day moving average is $0.77.
On the ratings front, MLV & Co. analyst Vernon Bernardino reiterated a Buy rating on ACUR, with a price target of $2, in a report issued on July 1. The current price target implies an upside of 244.8% from current levels. According to TipRanks.com, Bernardino has a total average return of -19.0%, a 18.2% success rate, and is ranked #3709 out of 3737 analysts.
Acura Pharmaceuticals Inc is a pharmaceutical company. It is engaged in the research, development & manufacture of productto address medication abuse & misuse, utilizing the Company’s proprietary, tamper-resistant AVERSION& IMPEDEtechnology platforms.