SAN FRANCISCO - Jaguar Health, Inc. (NASDAQ:JAGX), currently valued at $6.14 million in market capitalization, announced today that it will implement a reverse stock split of its voting common stock at a 1-for-25 ratio on Monday, March 24, 2025. This move aims to maintain the company’s compliance with Nasdaq’s listing standards, coming after the stock has declined nearly 89% over the past year according to InvestingPro data. The company’s stock will trade on a split-adjusted basis on the Nasdaq Capital Market under the ticker "JAGX" starting from the opening of the market on the effective date.
The decision for this financial maneuver followed approval at a Special Meeting of Stockholders, where the majority of votes cast by Jaguar Common Stock and Series J Perpetual Preferred Stock holders favored the proposal. This action is part of an effort to make Jaguar’s share price and outstanding share count more attractive to institutional investors, according to Lisa Conte, Jaguar’s president and CEO. InvestingPro analysis reveals the company operates with a significant debt burden, with a debt-to-equity ratio of 2.52 and is rapidly burning through cash.
On the effective date, every 25 shares of Jaguar’s Common Stock will be automatically reclassified as one share without any change in par value. No fractional shares will be issued; stockholders who would receive a fractional share will be compensated with a cash payment. Equiniti Trust Company, LLC will provide exchange instructions to stockholders with physical certificates, while those with shares in brokerage accounts will not need to take any action. With revenue of $10.48 million in the last twelve months and an 80.1% gross profit margin, the company faces significant challenges, as highlighted in the comprehensive analysis available through InvestingPro’s detailed research reports.
The reverse stock split is part of Jaguar Health’s broader strategy. The company, along with its family companies, is focused on developing prescription medicines derived from rainforest plants for gastrointestinal distress in both humans and animals. The FDA has already approved one of their products, Mytesi®, for the symptomatic relief of noninfectious diarrhea in adults with HIV/AIDS on antiretroviral therapy. Despite these developments, InvestingPro data indicates the company reported negative EBITDA of $27.94 million and analysts do not anticipate profitability this year.
This announcement is based on a press release statement and aims to provide a factual report on Jaguar Health’s reverse stock split and its implications for stockholders and the company’s compliance with Nasdaq’s listing requirements.
In other recent news, Jaguar Health, Inc. has made significant strides in managing its financial obligations and advancing its pharmaceutical initiatives. The company has extended the maturity date of a secured promissory note to January 2026, which was originally due in January 2025, as part of a Note Purchase Agreement with Streeterville Capital, LLC. This extension provides Jaguar Health with increased financial flexibility. Additionally, the company has issued 1,290,000 shares of common stock to reduce its royalty interest balance by $1,094,952, further adjusting its financial structure.
Jaguar Health is also actively developing NP-300, a drug candidate for treating severe cholera symptoms, in collaboration with Streeterville. The company is aiming for a Tropical Disease Priority Review Voucher from the FDA, which could expedite the drug’s review process. Moreover, Jaguar Health has received orphan-drug designation for cholera with its FDA-approved product, crofelemer, and is conducting multiple studies on this compound for rare diseases. These developments highlight the company’s efforts in addressing global health needs while managing its financial commitments effectively.
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