Cara Therapeutics Announces Effective Date of 1-for-12 Reverse Stock Split
Cara Therapeutics (CARA) announced a 1-for-12 reverse stock split effective December 30, 2024, at 5:00 p.m. Eastern Time. Trading on the split-adjusted basis will begin December 31, 2024. The company's authorized shares will reduce from 200,000,000 to 16,666,667, while outstanding shares will decrease from approximately 54.9 million to 4.6 million.
The reverse split aims to regain compliance with Nasdaq Capital Market's minimum bid price requirement. The split will uniformly affect all stockholders, maintaining their relative equity interests except for fractional shares, which will be settled in cash. Proportionate adjustments will be made to outstanding stock options and equity incentive plans.
Cara Therapeutics (CARA) ha annunciato un consolidamento azionario di 1 per 12, che entrer脿 in vigore il 30 dicembre 2024 alle 17:00, ora orientale. Le negoziazioni sulla base del numero di azioni rimanenti inizieranno il 31 dicembre 2024. Il numero di azioni autorizzate della societ脿 scender脿 da 200.000.000 a 16.666.667, mentre le azioni in circolazione diminuiranno da circa 54,9 milioni a 4,6 milioni.
Il consolidamento ha l'obiettivo di ripristinare la conformit脿 con il requisito del prezzo minimo di offerta del Nasdaq Capital Market. L'operazione influenzer脿 uniformemente tutti gli azionisti, mantenendo i loro interessi azionari relativi, ad eccezione delle azioni frazionarie, che saranno liquidate in contante. Saranno effettuati adeguamenti proporzionali per le opzioni azionarie in circolazione e i piani di incentivazione azionaria.
Cara Therapeutics (CARA) anunci贸 un split inverso de acciones de 1 por 12, que ser谩 efectivo el 30 de diciembre de 2024 a las 5:00 p.m. hora del Este. La negociaci贸n ajustada comenzar谩 el 31 de diciembre de 2024. Las acciones autorizadas de la empresa se reducir谩n de 200,000,000 a 16,666,667, mientras que las acciones en circulaci贸n disminuir谩n de aproximadamente 54.9 millones a 4.6 millones.
El split inverso tiene como objetivo recuperar el cumplimiento con el requisito de precio m铆nimo de oferta del Nasdaq Capital Market. Este ajuste afectar谩 uniformemente a todos los accionistas, manteniendo sus respectivos intereses en la propiedad, a excepci贸n de las acciones fraccionarias, que se liquidar谩n en efectivo. Se realizar谩n ajustes proporcionales a las opciones de acciones en circulaci贸n y a los planes de incentivos de acciones.
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Cara Therapeutics (CARA) a annonc茅 un rachat d'actions invers茅 de 1 pour 12, qui sera effectif le 30 d茅cembre 2024 脿 17h00, heure de l'Est. Les transactions sur la base du nouveau nombre d'actions commenceront le 31 d茅cembre 2024. Le nombre d'actions autoris茅es de la soci茅t茅 passera de 200 000 000 脿 16 666 667, tandis que le nombre d'actions en circulation diminuera d'environ 54,9 millions 脿 4,6 millions.
Le rachat invers茅 vise 脿 retrouver la conformit茅 avec l'exigence de prix d'offre minimum du Nasdaq Capital Market. Le rachat affectera uniform茅ment tous les actionnaires, maintenant leurs int茅r锚ts relatifs dans l'茅quit茅, 脿 l'exception des actions fractionnaires, qui seront r茅gl茅es en esp猫ces. Des ajustements proportionnels seront effectu茅s sur les options d'achat d'actions en circulation et les plans d'incitation en actions.
Cara Therapeutics (CARA) gab bekannt, dass am 30. Dezember 2024 um 17:00 Uhr Eastern Time ein Umkehrsplitt von 1 zu 12 wirksam wird. Der Handel auf der Grundlage des angepassten Splits beginnt am 31. Dezember 2024. Die Anzahl der genehmigten Aktien des Unternehmens wird von 200.000.000 auf 16.666.667 reduziert, w盲hrend die ausgegebenen Aktien von ungef盲hr 54,9 Millionen auf 4,6 Millionen sinken werden.
Der Umkehrsplit hat das Ziel, die Einhaltung der Mindestgebotspreisanforderungen des Nasdaq Capital Market wiederherzustellen. Der Split wird alle Aktion盲re gleichm盲脽ig betreffen und ihre relativen Eigeninteressen beibehalten, mit Ausnahme von Bruchst眉cken, die in bar ausgeglichen werden. Proportionale Anpassungen werden f眉r ausstehende Aktienoptionen und Eigenkapitalanreizpl盲ne vorgenommen.
- Strategic move to maintain Nasdaq listing compliance
- No change in stockholders' relative equity interests
- Indicates company's struggle to maintain minimum share price requirements
- Cash payments for fractional shares may force small investors to liquidate positions
Insights
The announced 1-for-12 reverse stock split is a critical defensive maneuver by Cara Therapeutics to maintain its Nasdaq listing. With a concerning market cap of just
The timing of implementation, effective December 30, suggests urgency in meeting Nasdaq's minimum bid requirements. Notably, reverse splits often signal financial distress and typically precede further share price declines. Historical market data shows that companies executing reverse splits underperform their peers by
The adjustment of equity incentive plans and outstanding options indicates potential challenges in retaining talent and maintaining employee morale. This corporate action, while necessary for listing compliance, reflects deeper concerns about the company's market position and financial trajectory.
This reverse split carries significant technical implications for market participants. The reduction in float to 4.6 million shares could substantially impact trading dynamics, potentially leading to increased volatility and wider bid-ask spreads. The decreased share count might attract institutional investors who previously couldn't hold sub-
The cash settlement of fractional shares could trigger forced selling pressure, particularly from retail investors holding small positions. The new CUSIP number (140755 208) will require updating of all derivative contracts and could temporarily affect option chain liquidity. Market makers will need to adjust their position sizes and risk models, potentially leading to temporary price discovery inefficiencies during the transition period.
STAMFORD, Conn., Dec. 27, 2024 (GLOBE NEWSWIRE) -- Cara Therapeutics, Inc. (Nasdaq: CARA) (the 鈥�Company鈥�), today announced that a 1-for-12 reverse stock split of its outstanding shares of common stock and reduction in the total number of authorized shares of its common stock from 200,000,000 to 16,666,667 will be effective as of 5:00 p.m. Eastern Time on Monday, December 30, 2024.
The Company's common stock will begin trading on a reverse stock split-adjusted basis at the opening of the market on Tuesday, December 31, 2024. Following the reverse stock split, the Company's common stock will continue to trade on the Nasdaq Capital Market under the symbol "CARA" with the new CUSIP number, 140755 208. The reverse stock split is part of the Company's plan to regain compliance with the minimum bid price requirement for continued listing on the Nasdaq Capital Market.
At the effective time of the reverse split, every 12 issued and outstanding shares of the Company's common stock will automatically be combined into one issued and outstanding share of the Company's common stock without any change in the par value per share and the authorized shares of the Company鈥檚 common stock will reduce from 200,000,000 to 16,666,667.
Fractional shares will not be issued in connection with the reverse stock split. 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.
In addition, proportionate adjustments will be made to the number of shares underlying, and the exercise or conversion prices of, the Company's outstanding stock options, and to the number of shares of common stock issuable under the Company's equity incentive plans.
The reverse stock split will reduce the number of issued and outstanding shares of the Company's common stock from approximately 54.9 million to approximately 4.6 million.
About Cara Therapeutics
Cara Therapeutics is a biopharmaceutical company focused on transforming the way pruritus is treated. The Company developed an IV formulation of difelikefalin, which is approved in the United States, EU, and multiple other countries for the treatment of moderate-to-severe pruritus associated with advanced chronic kidney disease in adults undergoing hemodialysis. The IV formulation is out-licensed worldwide. For more information, visit .
Forward-looking Statements
Statements contained in this press release regarding matters that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Examples of these forward-looking statements include statements concerning the Company鈥檚 business, including those regarding the reverse stock split and authorized share reduction and the timing thereof, the impact of the reverse stock split and authorized share reduction on stockholders, including any adjustments that may result from the treatment of fractional shares, and option holders, the potential impact of the reverse stock split on the bid price of the Company's common stock, the potential for the Company to regain compliance with the minimum bid price requirement for continued listing on the Nasdaq Capital Market, the expected number of shares of common stock to be issued and outstanding following the reverse stock split, and other statements that are not historical fact. Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. These risks and uncertainties include the risk that the Company may not be successful in exploring strategic alternatives and consummating one or more strategic transactions on attractive terms, if at all; the Company鈥檚 actual reductions in spending as compared to anticipated cost reductions; the Company鈥檚 costs of continuing to operate as a public company; and the other risks described more fully in Cara Therapeutics鈥� filings with the Securities and Exchange Commission, including the 鈥淩isk Factors鈥� section of the Company鈥檚 Annual Report on Form 10-K for the year ended December 31, 2023 and its other documents subsequently filed with or furnished to the Securities and Exchange Commission, including its Form 10-Q for the quarter ended September 30, 2024. All forward-looking statements contained in this press release speak only as of the date on which they were made. Cara Therapeutics undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they were made, except as required by law.
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FAQ
What is the ratio of CARA's reverse stock split announced in December 2024?
When will CARA's reverse stock split take effect?
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