Processing Your Payment

Please do not leave this page until complete. This can take a few moments.

February 7, 2025

BioXcel Therapeutics announces reverse stock split

PHOTO | FILE IMAGE Vimal Mehta is CEO of BioXcel Therapeutics Inc.
By David Krechevsky

New Haven-based biopharmaceutical company BioXcel Therapeutics Inc. on Thursday announced plans to execute a 1-for-16 reverse stock split of its common stock. 

Under the plan approved by the company’s board of directors, every 16 shares of the BioXcel's common stock issued and outstanding will automatically be converted into one share of common stock, with no change in the $0.001 par value per share or authorized number of shares of common stock.

The reverse stock split will take effect at 5 p.m. on Friday, Feb. 7. The company’s common stock, which trades on the Nasdaq Capital Market under the symbol BTAI, is expected to begin trading on a split-adjusted basis at the opening of the market on Monday, Feb. 10, the company said.

BioXcel said the reverse stock split is part of its plan to regain compliance with the minimum bid price requirement for continued listing on the Nasdaq Capital Market.

According to a filing with the Securities and Exchange Commission on Sept. 20 last year, BioXcel said it had received a letter from Nasdaq on Sept. 16 informing the company that for the previous 30 consecutive days the bid price for its common stock had closed below the $1-per-share minimum required for continued listing.

In addition, BioXcel said it received a second letter from Nasdaq on Sept. 20 notifying the company that the minimum market value of its listed securities over the previous 30 consecutive days had fallen below the minimum $35 million required for continued listing.

As of Sept. 23, the stock was trading around 58 cents per share, but on Thursday, the stock hit a 52-week low at 18 cents per share.

For the reverse stock split, the company said fractional shares will not be issued. Stockholders who would otherwise be entitled to receive a fractional share will be entitled to receive a cash payment. The reverse stock split will affect all stockholders uniformly and will not alter any stockholder's relative interest in the company's equity securities, except for any adjustments for fractional shares, BioXcel said.

The reverse stock split was approved by stockholders during a special meeting held Jan. 28. Stockholders approved the stock split to be effected at the discretion of the board of directors with a ratio within the range of 1-for-5 and 1-for-30. Subsequently, the board approved the 1-for-16 ratio. 

The announcement of the threat for its stock to be delisted came one day after the financially struggling company announced it had cut 15 employees, or 28% of its workforce. The following day, BioXcel notified its chief commercial officer, Matt Wiley, that his position was being eliminated.

Last month, the company said three C-level officials had taken cuts to their cash compensation as the business continues to face financial issues.

Based at 555 Long Wharf Drive, BioXcel uses artificial intelligence to develop medicines in neuroscience and immuno-oncology. The company is evaluating BXCL501 as a treatment for agitation associated with Alzheimer’s dementia (AAD).

BioXcel also developed and commercially sells its drug under the trademarked name IGALMI (dexmedetomidine). IGLAMI is a thin-film that dissolves in the mouth to treat acute agitation in patients with schizophrenia and bipolar disorder. It was approved by the Food and Drug Administration in April 2022.

Sign up for Enews

Most Recent

Most Recent

0 Comments

Order a PDF