Galena Biopharma Inc (NASDAQ:GALE) announced that on October 26, 2016, the Board of Directors approved a reverse stock split of its shares of common stock at a ratio of 1-for-20. The reverse stock split was authorized by the Company’s stockholders at the Special Meeting of Stockholders held on October 21, 2016.
The reverse stock split will become effective on November 11, 2016 and the Company’s common stock will commence trading on a split-adjusted basis when the market opens on Monday, November 14, 2016. The Company’s common stock will continue to trade on the NASDAQ Capital Market under the symbol “GALE” but will trade under the new CUSIP number 363256504.
Mark W. Schwartz, Ph.D., President and Chief Executive Officer, stated, “Effecting the reverse stock split will allow us to maintain compliance with the NASDAQ Capital Market minimum bid price requirement, which we believe is in the Company’s best interests and the best interests of our stockholders. We are confident in the value of our current pipeline led by GALE-401, which is expected to initiate a pivotal, Phase 3 trial next year, and in our cancer immunotherapy assets currently in multiple clinical trials. We believe that this technical change to our capital structure puts us in a better position to advance our clinical programs and grow the company into the future.”
As a result of the reverse split, every 20 pre-split shares of common stock outstanding will automatically combine into one new share of common stock without any action on the part of the holders. The reverse split will also apply to common stock issuable upon the exercise of the Company’s outstanding warrants and stock options.
As a result of the reverse stock split, the Company’s issued and outstanding shares of common stock will decrease to approximately 10,850,953 shares, post-split. No fractional shares will be issued as a result of the reverse split. Owners of fractional shares outstanding after the reverse stock split will be paid cash for such fractional interests.(Original Source)
Shares of Galena closed today at $0.23, down $0.021 or -8.52%. GALE has a 1-year high of $2.49 and a 1-year low of $0.22. The stock’s 50-day moving average is $0.32 and its 200-day moving average is $0.92.
On the ratings front, GALE has been the subject of a number of recent research reports. In a report issued on October 20, Maxim analyst Jason McCarthy reiterated a Buy rating on GALE, with a price target of $1.00, which represents a potential upside of 335% from where the stock is currently trading. Separately, on October 11, FBR’s Vernon Bernardino reiterated a Buy rating on the stock and has a price target of $2.00.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Jason McCarthy and Vernon Bernardino have a yearly average loss of 14.4% and -21.1% respectively. McCarthy has a success rate of 25% and is ranked #4019 out of 4178 analysts, while Bernardino has a success rate of 20% and is ranked #4044.
Galena Biopharma, Inc. engages as a biopharmaceutical company committed to the development and commercialization of targeted oncology therapeutics that address major unmet medical needs. It focuses on identifying and advancing therapeutic opportunities to improve cancer care from direct treatment of the disease to the reduction of its debilitating side effects. Its products include Abstral (fentanyl) sublingual tablets and Zuplenz (ondansetron) oral soluble film.