Galena Biopharma Inc (NASDAQ:GALE) investors have sent shares flying almost 17% this morning following the drug maker’s buzz-worthy news: shareholders said yes to approving nine proposals at the reconvened Special Meeting of Stockholders held at 9 a.m. this morning. Every proposal needed for the company’s business combination transaction with SELLAS Life Sciences to get a nod of approval succeeded; a transaction where Galena combined with SELLAS businesses are primed for a merger. In addition to giving a nod to the SELLAS alliance, the GALE board has likewise set into motion a reverse stock split ratio.
One proposal, regarding approval of an amendment to Galena’s Certificate of Incorporation to allow the Galena board of directors to approve amendments to Galena’s bylaws, was not approved. However, this is not impacting Wall Street bullish celebration today, as the failure of stockholders to approve this proposal has no impact on the Merger.
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Stockholders approved an amendment to the Galena Amended and Restated Certificate of Incorporation to effect a reverse stock split of the issued shares of the Galena common stock, at a ratio of not less than 1-for-10 and not greater than 1-for-30, with the exact ratio and effective time of the reverse stock split to be determined by the Galena board of directors and agreed upon by SELLAS and publicly announced by press release. Galena’s Board of Directors has determined, and SELLAS has agreed, to effect the reverse stock split of the Galena common stock at a ratio of 1‑for-30. Therefore, every 30 shares of Galena common stock issued and outstanding or held by Galena in treasury immediately prior to the effective time of the reverse stock split will automatically be reclassified at the effective time into one fully paid and nonassessable share of Galena common stock. The reverse stock split is expected to become effective at 4:15 p.m. Eastern Time today, December 29, 2017.
Subject to the satisfaction of customary closing conditions, the Merger is expected to close shortly following the effectiveness of the reverse stock split. Assuming effectiveness of the reverse stock split and closing of the Merger today, the common stock of the continuing company, which will be renamed SELLAS Life Sciences Group, Inc., will commence trading on the NASDAQ Capital Market on a post-reverse stock split basis under the new symbol “SLS” on Tuesday, January 2, 2018. The CUSIP number for the common stock of the continuing company will be 81642T 100.
GALE has a 1-year high of $2.41 and a 1-year low of $0.26. The stock’s 50-day moving average is $0.29 and its 200-day moving average is $0.40.
On the ratings front, Raymond James analyst Reni Benjamin assigned a Hold rating on GALE, in a report issued on December 18.
According to TipRanks.com, Benjamin has a yearly average loss of 7.5%, a 36% success rate, and is ranked #4608 out of 4735 analysts.
Galena Biopharma, Inc. is a biopharmaceutical company, which develops and commercializes hematology and oncology therapeutics that address unmet medical needs. The company 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 sublingual tablets and Zuplenz oral soluble film.