CytRx Corporation (NASDAQ:CYTR) reported that it has submitted a preliminary proxy statement with the SEC pertaining to a planned special meeting of shareholders to authorize the company’s Board to follow a reverse stock split of the firm’s common stock, if seen necessary. It may allow the firm to regain compliance with NASDAQ’s $1 minimum bid price requirement and continue with its listing on the respective platform.
The details
CytRx’s intends to avoid delisting from NASDAQ Capital Market. To achieve the same objective, the firm considers a higher share price leading from a reverse stock split process will help increase the shareholder base by expanding its call to institutional investors and as a result improve long-term stockholder value. As mentioned in the preliminary proxy materials, the company will conduct a special meeting of its stockholders to contemplate on the reverse stock split plan.
The date of this meeting will be disclosed in a definitive proxy statement to be filed with the SEC and mailed to stockholders. Shareholders are requested to go through the definitive proxy statement once it becomes available, as it will highlight vital information about CytRx and the intended split.
Earlier in the month, Traders News Source, published a report with no obligation on CytRx. As mentioned in the report, CytRX is a clinical-stage pharma entity specializing in oncology. In specific, the firm is focused on anti-cancer medications that employ linker technologies to improve the accumulation and release of medications at the tumor site. CytRx’s major product candidate is aldoxorubicin, which is a substitute to widely-used doxorubicin.
Aldoxorubicin is presently in late-stage advancement for the cure of relapsed soft tissue sarcoma, and is also being assessed for numerous other cancer indications. The firm is also engaged in the advancement of a new class of oncology candidates using their proprietary LADR know-how. In the last week of July, CytRX reported that it has finalized a strategic license deal, for the exclusive rights to commercialize and develop aldoxorubicin for all indications.
