Rexahn Pharmaceuticals, Inc. (NYSEMKT:RNN) recently announced that it would be exercising a 1-for-10 reverse stock split, of all outstanding shares of the company’s common stock. Moreover, RNN would also exercise a corresponding proportional reduction in the number of authorized capital shares of the company, as well. The action is expected to be executed on May 5, 2017, with the stock starting to trade on the NYSEMKT, on a split-adjusted basis.
The company expects that its shareholders would receive cash in lieu of any fraction of shares, formed as a result of the split. The CEO of Rexahn, Peter D. Suzdak, stated that the board feels that this is an appropriate time for implementing a reverse split. He also thanked the shareholders for their continued support and patience. Mr. Suzdak further claimed that the move is likely to make their stock more attractive to the financial community, particularly institutional investors. He also stated that this support has helped them advance clinical development of targeted therapies, for cancer patients.
Currently, Rexhan is working on several drug candidates, aimed at several different types of cancers. The company’s RX-3117 is a clinical development candidate, for the treatment of pancreatic cancer, which is currently in the phase-2a of clinical trials. Similarly, RNN has Supinoxin and Archexin, are in the phase-2a clinical trials as well. The drugs are developed as treatments for triple negative breast cancer and renal cell carcinoma, respectively.
Earlier, the company announced its financial results for the 4Q2016, recording a net loss of $16.4 million. This was lower than the loss from the preceding year, while Rexahn’s cash position declined by approximately $3 million. As such, RNN’s cash position stood at $20.3 million, by the end of the 4Q2016. It is expected that this amount is sufficient to fund the company’s activities, through the 1Q2018.
Rexahn Pharmaceuticals, Inc. (NYSEMKT:RNN) closed at a share price of $0.427, after having a trade volume of 1.48 million, during the May 1 trading session, 0.33% higher than the session before.