Humanigen Inc (OTCMKTS:HGEN), the biotech firm focused on cancers and infectious diseases, is poised to carry out a reverse share split ahead of a potential listing on the Nasdaq exchange.
In a statement, the firm said its board had decided to carry out a 1:5 (every five shares consolidated into one) reverse split of its outstanding shares, reducing the number of shares to around 42 million from 211 million previously.
READ: Humanigen says lenzilumab demonstrated 80% reduction in relative risk of invasive mechanical ventilation and/or death in coronavirus patients
The split is expected to occur at 4:30pm EST on September 11 this year, with trading expected to begin on the split-adjusted basis on the OTCQB venture market at the market open on September 14.
The stock will continue to trade under the symbol 'HGEN' but the security will be assigned a new CUSIP number, the group told investors.
The move is "intended to enable the company to achieve several important corporate objectives", the company said, including satisfying the minimum bid price requirement in connection with the company's application to list on the Nasdaq and making additional shares of common stock available for future issue.
Last week, the company revealed that the first case-control data of lenzilumab in severe coronavirus (COVID-19) cases showed an 80% reduction in relative risk of invasive mechanical ventilation (IMV) and/or death for patients treated with the drug compared to a matched control group.
Lenzilumab, an anti-human granulocyte macrophage-colony stimulating factor (GM-CSF) monoclonal antibody drug candidate, is being evaluated in an ongoing Phase III trial and was selected by the National Institutes of Health for its COVID-19 Big Effect Trial.
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