Galecto Implements Reverse Stock Split
Galecto, Inc. (NASDAQ: GLTO), a clinical-stage biotechnology company focused on developing innovative treatments for cancer and fibrosis, has announced it will implement a 1-for-25 Reverse Stock Split of its common stock. This strategic move is effective at 5:00 p.m. Eastern Time on a designated date. The shareholders have already approved this decision during the company’s Annual Meeting of Stockholders.
Purpose of the Reverse Stock Split
The primary goal of the Reverse Stock Split is to ensure compliance with the minimum bid price requirement for maintaining its listing on The Nasdaq Capital Market. This action is pivotal for the company to continue being publicly traded under the symbol “GLTO”, enabling a more stable market perception and investor confidence.
Details of the Reverse Stock Split
Upon the effective time of the Reverse Stock Split, every twenty-five shares of the company’s issued and outstanding common stock will automatically be converted into one issued and outstanding share. This change will decrease the outstanding common stock from approximately 27.1 million shares to around 1.1 million shares. However, the total number of authorized shares will remain unchanged.
Impact on Shareholders
One significant aspect of this reverse stock split is that there will be no issuance of fractional shares. Shareholders who might receive fractional shares will have those amounts rounded up to the nearest whole share. This split is designed to impact all holders of the company’s common stock in a proportional manner, ensuring that the percentage ownership of each shareholder is maintained, with only minor adjustments due to the rounding of fractional shares.
Role of the Exchange Agent
Computershare Inc. has been appointed as the exchange agent for the Reverse Stock Split. Registered shareholders who hold pre-split shares are not required to take any action to receive their adjusted post-split shares. Shareholders who own shares through a broker, bank, trust, or other nominees will see their holdings automatically adjusted without needing further action.
Further Information to Consider
For clients seeking additional details about the Reverse Stock Split, the company has provided information through its definitive proxy statement filed with the U.S. Securities and Exchange Commission (SEC). This transparency allows shareholders to stay informed regarding company changes and futures.
About Galecto
Galecto is dedicated to clinical research and development, working primarily on small molecule-based inhibitors targeting galectin-3 and LOXL2. Notably, the company is engaged in several Phase 2 clinical trials targeting conditions such as fibrosis and various cancers. Their pipeline includes promising candidates like GB2064, an orally active LOXL2 inhibitor aimed at treating myelofibrosis, and GB1211, an orally active galectin-3 inhibitor aimed at treating liver cirrhosis.
Strategic Alternatives Exploration
Recently, Galecto initiated a process to evaluate strategic alternatives as part of its review process. This approach includes exploring options like stock or asset acquisition, mergers, and other business combinations that could enhance Galecto’s growth trajectory and clinical prospects.
For Further Inquiries
For any additional information or specific inquiries, please contact the company's representatives.
Contact Information
Hans Schambye, CEO
+45 70 70 52 10
Investors/US:
Ashley R. Robinson
arr@lifesciadvisors.com
+1 617 430 7577
Media/EU:
Sandya von der Weid
svonderweid@lifesciadvisors.com
+41 78 680 0538
Frequently Asked Questions
What is the main reason for the Reverse Stock Split by Galecto?
The main reason for the Reverse Stock Split is to comply with the minimum bid price requirement for maintaining its listing on The Nasdaq Capital Market.
How will the Reverse Stock Split affect existing shareholders?
The Reverse Stock Split will not change shareholders' percentage ownership in the company, although there may be minimal adjustments due to rounding effects on fractional shares.
When will the Reverse Stock Split become effective?
The Reverse Stock Split will take effect at 5:00 p.m. Eastern Time on the specified date mentioned in the announcement.
Who is the exchange agent for the Reverse Stock Split?
Computershare Inc. is acting as the exchange agent for the Reverse Stock Split.
What should shareholders do to receive their post-split shares?
No action is required from registered shareholders to receive their adjusted post-split shares. Adjustments will be made automatically for those who hold shares through brokers or other nominees.
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