Cingulate initiates reverse stock split to maintain Nasdaq listing
Cingulate Inc., a pharmaceutical company, announced on Wednesday that it will undergo a 1-for-12 reverse stock split effective on Friday, August 9, 2024. This decision comes as part of the company’s efforts to comply with Nasdaq’s minimum bid price requirement and to continue its listing on the exchange.
The reverse stock split will convert every twelve shares of existing common stock into one share. The company’s common stock will trade on a split-adjusted basis from the market opening on August 9, 2024, under a new CUSIP number, 17248W303. The reverse stock split was approved by Cingulate’s stockholders on July 30, 2024, and the company’s Board of Directors determined the final ratio.
This corporate action follows the Nasdaq Hearings Panel’s conditional approval for Cingulate to remain listed, provided it demonstrates compliance with the $1.00 minimum bid price requirement by August 23, 2024. The company must maintain a closing bid price of at least $1.00 per share for a minimum of ten consecutive trading sessions.
The reverse stock split will not change the par value of the common stock or the number of authorized shares. However, it will adjust outstanding stock options and warrants to purchase shares of common stock. No fractional shares will be issued; stockholders who would otherwise hold a fractional share will receive an additional fraction of a share to round up to the next whole share.
The company’s fiscal year-end remains on December 31, and its state of incorporation is Delaware. Cingulate’s common stock and warrants are listed on The Nasdaq Stock Market LLC under the symbols CING and CINGW, respectively.
The information in this article is based on a press release statement from Cingulate Inc.
InvestingPro Insights
As Cingulate Inc. navigates the complexities of maintaining its Nasdaq listing through a reverse stock split, a closer look at the company’s financial health and market performance provides additional context. According to recent data from InvestingPro, Cingulate Inc. has a market capitalization of just $3.22 million, highlighting its status as a small-cap entity in the pharmaceutical industry.
InvestingPro Tips reveal that Cingulate Inc. holds more cash than debt on its balance sheet, which could offer some financial flexibility in its operations. However, the company is also quickly burning through cash, which raises concerns about its long-term financial sustainability. The stock’s recent performance has been notably turbulent, with a price total return of -97.3% over the last year, indicating significant investor caution.
Additional metrics from InvestingPro show that Cingulate Inc. has a negative P/E ratio of -0.13 for the last twelve months as of Q1 2024, suggesting that the company is not currently profitable. The price of Cingulate’s stock is also trading near its 52-week low, with a previous close at $0.31, which may reflect the market’s reaction to its financial challenges and the impending reverse stock split.
Investors looking for a deeper dive into Cingulate Inc.’s financial outlook can find a wealth of information on InvestingPro, with a total of 16 additional InvestingPro Tips available, offering a comprehensive analysis of the company’s potential risks and opportunities.
These insights are particularly relevant as the company approaches its reverse stock split and seeks to comply with Nasdaq’s minimum bid price requirement. Understanding the nuances of Cingulate’s financial position and market performance is crucial for investors considering the impact of these corporate actions on their investment decisions.
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