LEXINGTON, Mass. - Agenus Inc . (NASDAQ:AGEN), an immuno-oncology company, has received approval from its stockholders for a one-for-twenty reverse stock split of its common stock, scheduled to take effect on April 12, 2024. The company aims to increase its per-share trading price to maintain its listing on the Nasdaq Capital Markets and to qualify for inclusion in the Russell Indices.
The reverse stock split will apply to all issued and outstanding shares of Agenus's common stock, but the par value will remain at $0.01 per share. This action is expected to proportionally adjust stockholders' equity interest, except for the elimination of fractional shares, which will be compensated for in cash.
Stockholders with physical certificates will receive instructions from Equiniti Trust Company, LLC, the exchange agent, on exchanging their certificates for post-split shares. Those holding shares electronically or through banks, brokers, or other nominees will have their positions automatically adjusted.
The reverse stock split is part of Agenus's strategic efforts to comply with Nasdaq's minimum price requirement, which is essential for the continued trading of its stock on this exchange. The company's common stock will trade on a split-adjusted basis under the existing symbol AGEN and a new CUSIP number following the implementation of the reverse stock split.
This move does not affect the company's mission to develop immunological agents for cancer treatment and infectious diseases, nor its broad pipeline of antibody therapeutics, cell therapies, and adjuvants. Based in Lexington, MA, Agenus remains focused on advancing immuno-oncology for patient benefit.
The information in this article is based on a press release statement. Agenus has highlighted that the reverse stock split will not alter any stockholder's percentage interest in the company's equity, except for the cash compensation for fractional shares. Investors and stockholders can refer to Agenus's definitive proxy statement filed on February 26, 2024, and its amendment on February 29, 2024, for additional details.
InvestingPro Insights
In light of Agenus Inc.'s recent move to execute a reverse stock split, current and potential investors may find the following insights from InvestingPro particularly pertinent. The company's market capitalization stands at $211.14M, which reflects its valuation in the current market.
Despite efforts to maintain compliance with Nasdaq listing requirements and improve stock appeal, Agenus has faced significant challenges, as indicated by a notable price drop of 51.82% over the last six months. This aligns with the InvestingPro Tip that the stock has taken a substantial hit in recent times.
Moreover, the company's gross profit margin for the last twelve months as of Q4 2023 has been reported at a concerning -52.05%, reinforcing the InvestingPro Tip regarding Agenus's weak gross profit margins. Moreover, the price of Agenus's stock at the previous close was $0.51, which is 23.75% of its 52-week high, suggesting that the stock is currently trading significantly below its peak price over the past year.
For investors looking to dive deeper into Agenus's financial health and future prospects, InvestingPro offers a range of additional tips. There are 10 more InvestingPro Tips available, which include insights on the company's cash burn rate, profitability expectations, and debt levels.
These tips could be invaluable for making informed investment decisions, especially in light of the recent reverse stock split. Investors interested in accessing these tips can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro, where they can find these and other valuable metrics for Agenus.
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