Galena Biopharma (GALE) shares fell 14% on Tuesday after the company announced a one-for-20 reverse stock split to take effect on Nov. 11.
The stock will begin trading on an adjusted basis on Nov. 14. As a result of the reverse stock split, the company’s issued and outstanding shares of common stock will decrease to approximately 10.9 million shares, post-split
“Effecting the reverse stock split will allow us to maintain compliance with the NASDAQ Capital Market minimum bid price requirement, which we believe is in the company’s best interests and the best interests of our stockholders,” said CEO Mark Schwartz. “We are confident in the value of our current pipeline led by GALE-401, which is expected to initiate a pivotal, Phase 3 trial next year, and in our cancer immunotherapy assets currently in multiple clinical trials. We believe that this technical change to our capital structure puts us in a better position to advance our clinical programs and grow the company into the future.”