In a strategic move, Avenue Therapeutics Inc . (NASDAQ: NASDAQ:ATXI) has announced a reverse stock split, as per a recent 8K SEC filing. Effective Tuesday, the majority of the company's voting capital stockholders granted the board of directors discretionary authority to implement a reverse stock split at a ratio ranging from 30-for-1 to 75-for-1. The exact ratio is yet to be determined by the board.
This decision was made through a written consent from stockholders holding 3,133,886 shares of common stock and 250,000 shares of Class A Preferred Stock. The voting power of Class A Preferred Stock is notably higher, with each share having the equivalent of 194.8 votes as of the date of consent. This collective action represents approximately 56% of the voting power of Avenue Therapeutics' capital stock.
The reverse stock split is intended to be effected by amending the Company's Third Amended and Restated Certificate of Incorporation with the Secretary of State of Delaware. The board's approval of both the reverse stock split and the amendment aligns with the stockholders' consent, paving the way for the corporate action.
In compliance with SEC regulations, Avenue Therapeutics will file a Schedule 14C information statement and disseminate it to the company's stockholders. This document will provide further details about the reverse stock split and its implications.
The reverse stock split is a measure often taken by companies to boost the market price of their shares and is typically employed to comply with stock exchange listing requirements or to appeal to a broader range of investors. For Avenue Therapeutics, the execution of this reverse stock split could be a significant step in the company's financial strategy.
The information regarding this corporate action is based on the latest SEC filing by Avenue Therapeutics and reflects the company's current plans as disclosed to the public and its investors.
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