Kintara Announces One-for-Fifty Reverse Stock Split
SAN DIEGO, Nov. 11, 2022 /PRNewswire/ -- Kintara Therapeutics, Inc. (Nasdaq: KTRA) ("Kintara" or the "Company"), a biopharmaceutical company focused on the development of new solid tumor cancer therapies, today announced 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. 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.
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.
Located in San Diego, California, Kintara is dedicated to the development of novel cancer therapies for patients with unmet medical needs. Kintara is developing two late-stage, Phase 3-ready therapeutics for clear unmet medical needs with reduced risk development programs. The two programs are VAL-083 for glioblastoma (GBM) and REM-001 for cutaneous metastatic breast cancer (CMBC).
VAL-083 is a "first-in-class", small-molecule chemotherapeutic with a novel mechanism of action that has demonstrated clinical activity against a range of cancers, including central nervous system, ovarian and other solid tumors (e.g., NSCLC, bladder cancer, head and neck) in U.S. clinical trials sponsored by the National Cancer Institute (NCI). Based on Kintara's internal research programs and these prior NCI-sponsored clinical studies, Kintara is currently advancing VAL-083 in the Global Coalition for Adaptive Research registrational Phase 2/3 clinical trial titled Glioblastoma Adaptive Global Innovative Learning Environment (GBM AGILE) Study to support the development and commercialization of VAL-083 in GBM.
Kintara also has a proprietary, late-stage PDT platform that holds promise as a localized cutaneous, or visceral, tumor treatment as well as in other potential indications. REM-001 therapy has been previously studied in four Phase 2/3 clinical trials in patients with CMBC who had previously received chemotherapy and/or failed radiation therapy. In CMBC, REM-001 has a clinical efficacy to date of 80% complete responses of CMBC evaluable lesions and an existing robust safety database of approximately 1,100 patients across multiple indications. Kintara has paused the REM-001 CMBC program to conserve cash resources.
SAFE HARBOR STATEMENT
Any statements contained in this press release that do not describe historical facts may constitute forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995, including statements regarding the status of the Company's clinical trials and the GBM AGILE study. Any forward-looking statements contained herein are based on current expectations but are subject to a number of risks and uncertainties. The factors that could cause actual future results to differ materially from current expectations include, but are not limited to, risks and uncertainties relating to the Company's ability to regain compliance with The Nasdaq Capital Market's listing standards, the impact of the COVID-19 pandemic on the Company's operations and clinical trials; the Company's ability to develop, market and sell products based on its technology; the expected benefits and efficacy of the Company's products and technology; the availability of substantial additional funding for the Company to continue its operations and to conduct research and development, clinical studies and future product commercialization; and, the Company's business, research, product development, regulatory approval, marketing and distribution plans and strategies. These and other factors are identified and described in more detail in the Company's filings with the SEC, including the Company's Annual Report on Form 10-K for the year ended June 30, 2022, the Company's Quarterly Reports on Form 10-Q, and the Company's Current Reports on Form 8-K.
Mike Moyer, Managing Director
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SOURCE Kintara Therapeutics
Released November 11, 2022