Cancer drug developer CytRx Corp. on Tuesday announced a reverse split of its common stock that should help the company become compliant with Nasdaq listing requirements.
The West L.A. biopharmaceutical company said the reverse split will be at a ratio of 1-for-7. That will reduce the number of outstanding shares from about 149 million to 21.3 million. CytRx’s stock will begin trading on a split-adjusted basis when the market opens on Wednesday.
The company was told by market regulators last month that its shares must close at $1 for minimum of 10 consecutive business days by the close of business on May 30 in order to remain listed on the Nasdaq Capital Market.
CytRx has no drugs on the market but several in mid-stage clinical trials, including potential treatments for soft tissue sarcomas, lung cancer and leukemia. Last week it reported a wider-than-expected first quarter loss, largely related to hedging strategies.
Shares were down 5 cents, or 12.5 percent, to 35 cents in midday trading on the Nasdaq.