Citius Pharmaceuticals Implements 1-for-25 Reverse Stock Split to Enhance Share Value

Citius Pharmaceuticals' Reverse Stock Split

Citius Pharmaceuticals, Inc. (Nasdaq: CTXR) has announced an upcoming reverse stock split in a bid to elevate its common stock price. The company will execute a 1-for-25 reverse stock split, set to take effect at 5:00 p.m. ET on November 25, 2024. This strategy aims to enhance the share price of Citius Pharma above the Nasdaq's minimum bid requirement of $1.00 per share for continued listing on the Nasdaq Capital Market.

The decision to implement this reverse split has been approved by the Citius Pharma Board of Directors pursuant to Nevada law, eliminating the need for shareholder approval. Following the split, the common stock will resume trading with a new CUSIP number on November 26, 2024.

During this process, every 25 outstanding shares will be consolidated into a single share, maintaining the par value unchanged. It is important to note that no fractional shares will be issued; instead, any fractional shares arising from the split will be rounded up to the nearest whole share. The total number of authorized shares will decrease from 400 million to 16 million, while the outstanding shares will drop from approximately 193 million to about 7.7 million.

This move is particularly significant for Citius as the company looks to comply with Nasdaq listing standards, which are essential for its ongoing operations and investor confidence. The consequences of the reverse split will spill over to the company’s existing outstanding stock options and warrants, necessitating proportionate adjustments in exercise prices.

Citius Pharmaceuticals, which focuses on developing and commercializing critical care and biopharmaceutical products, has seen exciting developments lately, such as the FDA's approval of LYMPHIR™, a targeted immunotherapy for cutaneous T-cell lymphoma. Additionally, the company’s pipeline includes Mino-Lok®, an antibiotic solution for intravenous catheter salvage, as well as CITI-002 (Halo-Lido), formulated to relieve hemorrhoid symptoms.

In 2023, Citius completed a pivotal Phase 3 trial for Mino-Lok, achieving its primary and secondary endpoints, an essential benchmark for the company’s future revenue potential and product marketability. To secure the next steps for both Mino-Lok and Halo-Lido, Citius is maintaining active dialogues with the FDA.

The company’s recent stock management initiative reflects strategic planning to combat challenges faced by burgeoning biopharmaceutical entities, such as the impact of stock prices on investor interest and capital challenges. The upcoming stock split is designed to align market perceptions with the company’s long-term goals through increased share prices, facilitating further investments and market stability.

In summary, as Citius Pharmaceuticals transitions through this strategic reverse stock split, investors should remain informed about the company’s developmental progress and financial maneuvers that might influence the stock's performance in the coming months. With a robust product pipeline and ongoing compliance with regulatory standards, Citius aims to solidify its standing in the biopharmaceutical field, and the reverse stock split is merely a step towards achieving greater corporate and market success.