On November 11, 2022 – Kintara Therapeutics, Inc. (Nasdaq: KTRA) ("Kintara" or the "Company"), a biopharmaceutical company focused on the development of new solid tumor cancer therapies, reported that it will effect a 1-for-50 reverse stock split of its outstanding and authorized common stock, effective at 5:00 p.m. (EST) on November 11, 2022 (Press release, Kintara Therapeutics, NOV 11, 2022, View Source [SID1234623855]). Kintara’s common stock will continue to trade on The Nasdaq Capital Market under the symbol "KTRA" and under a new CUSIP number, 49720K200. Kintara’s common stock will begin trading on a reverse stock split-adjusted basis on The Nasdaq Capital Market when the market opens on November 14, 2022.
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The reverse stock split is intended to increase the per share trading price of Kintara’s common stock to satisfy the $1.00 minimum bid price requirement for continued listing on The Nasdaq Capital Market (Nasdaq Listing Rule 5550(a)(2)). As a result of the reverse stock split, every fifty pre-split shares of common stock outstanding and authorized will automatically combine into one new share of common stock without any action on the part of the stockholders. The number of outstanding shares of common stock will be reduced from 80,807,316 shares issued and outstanding as of November 8, 2022, to approximately 1,616,146. The number of authorized shares of common stock will be reduced from 275,000,000 shares authorized, to 5,500,000.
No fractional shares will be issued in connection with the reverse stock split. Any fractional shares of common stock resulting from the reverse stock split will be rounded up to the nearest whole post-split share and no stockholders will receive cash in lieu of fractional shares. The reverse stock split will also apply to common stock issuable upon the conversion of Kintara’s outstanding preferred stock and the exercise of Kintara’s outstanding warrants, restricted stock units, and stock options, with adjustments to the conversion prices and exercise prices thereof as required by the terms of those securities.
No stockholder approval of the reverse stock split was required under Nevada law, and on October 28, 2022, the Board of Directors of the Company approved and authorized the reverse stock split at a ratio of one-for-fifty (1:50).
Mountain Share Transfer, LLC is acting as the exchange agent and transfer agent for the reverse stock split. Stockholders holding their shares in book-entry form or in brokerage accounts need not take any action in connection with the reverse stock split. Beneficial holders are encouraged to contact their bank, broker or custodian with any procedural questions.