Neuralstem, Inc. (NASDAQ: CUR) announced a reverse stock split of its shares of common stock at a ratio of 1-for-13. The reverse stock split will become effective on Friday, January 6, 2017 after market close and shares of Neuralstem Inc. common stock will trade on a post-split basis on the Nasdaq Capital Market under the Company’s existing trading symbol, “CUR,” at the market open on Monday, January 9, 2017.
The reverse stock split enables Neuralstem to regain compliance with the $1.00 minimum bid price condition and thereby fulfill all of the NASDAQ Capital Market continued listing requirements.
“The reverse split along with the recent $20 million strategic investment has increased our shareholder equity, strengthened our capital structure, and allows us to satisfy all the Nasdaq listing requirements,” commented Rich Daly, Chairman and CEO, Neuralstem. “Over the last year we have continued to execute on the new operational and clinical strategy to help increase shareholder confidence and interest in Neuralstem. We look forward to focusing on providing our Phase 2 MDD clinical trial results this year.”
At the effect time of the reverse stock split, every thirteen (13) shares of Neuralstem common stock will be combined into one (1) share of common stock. This will reduce the Company’s issued and outstanding common stock from approximately 143,427,149 million shares to approximately 11,032,858 million shares. Fractional shares will be rounded up to the nearest whole share and proportional adjustments will be made to the Company’s outstanding stock options, warrants and equity incentive plans. The reverse stock split will not materially affect any stockholder’s ownership percentage of the Company’s common stock. (Original Source)
Shares of Neuralstem are currently trading at $0.339, up $0.024 or +7.75%. CUR has a 1-year high of $1.09 and a 1-year low of $0.19. The stock’s 50-day moving average is $0.28 and its 200-day moving average is $0.28.
On the ratings front, Neuralstem has been the subject of a number of recent research reports. In a report issued on November 8, Roth Capital analyst Joseph Pantginis reiterated a Buy rating on CUR, with a price target of $1.20, which implies an upside of 279% from current levels. Separately, on October 4, Aegis Capital Corp.’s Jason Wittes reiterated a Buy rating on the stock and has a price target of $4.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Joseph Pantginis and Jason Wittes have a yearly average loss of -17.4% and a return of 3.8% respectively. Pantginis has a success rate of 31% and is ranked #4282 out of 4348 analysts, while Wittes has a success rate of 53% and is ranked #1075.
Neuralstem, Inc. is a biopharmaceutical company, which is focused on the research, development and commercialization of central nervous system therapies based on human neuronal stem cells and small molecule compounds. Its patented technology enables the commercial-scale production of multiple types of central nervous system stem cells, which are under development for the potential treatment of central nervous system diseases and conditions.