Galecto Announces Reverse Stock Split
Galecto, Inc. (NASDAQ: GLTO), a biotechnology company in the clinical stage that focuses on creating innovative treatments for cancer and fibrosis, has declared its plan to execute a 1-for-25 Reverse Stock Split of its common stock. This strategic decision will take effect at 5:00 p.m. Eastern Time on a specified date. Shareholders have already given their approval for this action during the company’s Annual Meeting of Stockholders.
Why the Reverse Stock Split is Necessary
The main purpose of the Reverse Stock Split is to meet the minimum bid price requirement necessary to maintain its listing on The Nasdaq Capital Market. This step is crucial for the company to continue trading publicly under the symbol “GLTO,” which aims to foster a more stable market perception and bolster investor confidence.
Understanding the Reverse Stock Split
When the Reverse Stock Split takes effect, every twenty-five shares of the company’s currently issued and outstanding common stock will automatically convert into one issued and outstanding share. This adjustment will reduce the total outstanding common stock from approximately 27.1 million shares to about 1.1 million shares. However, the total number of authorized shares will remain the same.
Effects on Shareholders
An important detail regarding the reverse stock split is that no fractional shares will be issued. Any shareholders who would receive fractional shares will have those amounts rounded up to the nearest whole share. This split is designed to affect all holders of the company’s common stock proportionally, ensuring that each shareholder's percentage ownership remains intact, with only slight adjustments due to rounding.
Exchange Agent's Role
Computershare Inc. has been designated as the exchange agent for the Reverse Stock Split. Registered shareholders holding pre-split shares will not need to take any action to receive their adjusted post-split shares. Shareholders who own shares through brokers, banks, trusts, or other nominees will see their holdings automatically adjusted without needing to do anything further.
Additional Information Available
For those looking for more details about the Reverse Stock Split, the company has made information available through its definitive proxy statement filed with the U.S. Securities and Exchange Commission (SEC). This commitment to transparency allows shareholders to stay informed about changes and the future direction of the company.
About Galecto
Galecto is committed to clinical research and development, primarily focusing on small molecule-based inhibitors that target galectin-3 and LOXL2. The company is currently involved in several Phase 2 clinical trials aimed at treating conditions such as fibrosis and various types of cancer. Their pipeline includes promising candidates like GB2064, an orally active LOXL2 inhibitor for myelofibrosis, and GB1211, an orally active galectin-3 inhibitor for liver cirrhosis.
Exploring Strategic Alternatives
Recently, Galecto has begun a process to explore strategic alternatives as part of its review. This includes looking into options such as stock or asset acquisitions, mergers, and other business combinations that could enhance Galecto’s growth and clinical prospects.
For More Information
If you have any further questions or need specific information, please reach out to 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 primary reason for the Reverse Stock Split is to comply with the minimum bid price requirement necessary for maintaining its listing on The Nasdaq Capital Market.
How will the Reverse Stock Split affect existing shareholders?
The Reverse Stock Split will not alter shareholders' percentage ownership in the company, although there may be slight 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 designated as the exchange agent for the Reverse Stock Split.
What should shareholders do to receive their post-split shares?
No action is necessary for registered shareholders to receive their adjusted post-split shares. Adjustments will be made automatically for those holding shares through brokers or other nominees.
