Alaunos Therapeutics announces 1-for-10 reverse stock split

Houston-based Alaunos Therapeutics, Inc. has announced a reverse stock split of its common stock at a ratio of 1-for-10, set to take effect on July 17, 2024, at 5:00 p.m. Eastern Time. This action is the result of a Third Amended and Restated Certificate of Incorporation that was approved by the company’s Board of Directors on June 26, 2024, and will see every 10 shares of the company’s issued and outstanding common stock automatically combined and converted into 1 share of common stock.

Trading on a split-adjusted basis will commence on Thursday, July 18, 2024, on The Nasdaq Stock Market under the ticker symbol TCRT, although it will be associated with a new CUSIP number, 98973P309.

The decision to implement the reverse stock split was initially approved by the stockholders at the Annual Meeting of Stockholders held on June 6, 2024. The stockholders also granted the Board the authority to determine the exact ratio for the reverse split, which was finalized by the Board on the same day as the approval of the amendment.

Equiniti Trust Company has been appointed as the exchange agent for the Reverse Split and will provide stockholders with instructions on how to exchange their pre-split shares for post-split shares.

The reverse stock split is a strategic move by Alaunos Therapeutics, which was formerly known as Ziopharm Oncology (NASDAQ:) Inc. and before that, EasyWeb Inc. The company operates in the pharmaceutical preparations sector under the industrial classification code 2834 and is incorporated in Delaware.

This news is based on a press release statement and the full text of the Charter Amendment can be found in the Exhibit 3.1 of the Current Report on Form 8-K filed with the SEC.

In other recent news, Alaunos Therapeutics has made significant changes to its accounting structure. The company’s Audit Committee approved the dismissal of RSM US LLP as its independent registered public accounting firm and appointed Cherry Bekaert LLP in its place.

Notably, the reports from RSM for the fiscal years ending December 2023 and 2022 did not contain any adverse opinion or disclaimer of opinion. The decision to change accountants was made without any disagreements or reportable events between Alaunos Therapeutics and RSM. Cherry Bekaert LLP’s engagement took place on the same day as RSM’s dismissal.

Alaunos Therapeutics had not consulted Cherry Bekaert LLP on any accounting principles or transactions prior to this appointment. These are recent developments as Alaunos Therapeutics continues to meet its financial reporting obligations.

InvestingPro Insights

As Alaunos Therapeutics embarks on its reverse stock split, a glimpse at the company’s financial health and market performance through InvestingPro metrics reveals a challenging landscape. With a market capitalization of just $10.86 million and a dramatic revenue decline of nearly 100% in the last twelve months as of Q1 2024, the picture painted is one of a company struggling to find its footing in the pharmaceutical preparations sector. The negative gross profit margin and operating income margin further underscore the financial difficulties Alaunos faces.

InvestingPro Tips suggest that while Alaunos holds more cash than debt, which is typically a positive sign, the company is quickly burning through cash and analysts expect a sales decline in the current year. Moreover, the stock price has shown a tendency to move inversely to the market, which might indicate a higher risk for investors looking for market-correlated returns. The company’s valuation implies a poor free cash flow yield, and analysts do not anticipate profitability this year. For those considering an investment in Alaunos Therapeutics, these insights could be crucial.

For investors seeking a more comprehensive analysis, there are additional InvestingPro Tips available at Take advantage of these insights and use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.