Avenue Therapeutics Announces Reverse Stock Split

MIAMI, April 24, 2024 (GLOBE NEWSWIRE) -- Avenue Therapeutics, Inc. (Nasdaq: ATXI) (“Avenue” or the “Company”), a specialty pharmaceutical company focused on the development and commercialization of therapies for the treatment of neurologic diseases, today announced that it will effect a 1-for-75 reverse split of its issued and outstanding common stock. Avenue expects its common stock to begin trading on a split-adjusted basis on the Nasdaq Capital Market as of the commencement of trading on April 26, 2024 with a new CUSIP number of 05360L403. The ticker symbol for the Company’s stock will remain “ATXI.”

The reverse stock split was approved on March 6, 2024 by Avenue’s Board of Directors and stockholders representing approximately 56% of the voting power of Avenue’s outstanding capital stock, with the authorization to determine the final ratio (within a specified range) having been granted to the Company’s Board of Directors. The reverse stock split is intended to bring the Company into compliance with Nasdaq’s $1.00 per share minimum bid price requirement for continued listing.

After the effectiveness of the reverse stock split, the number of outstanding shares of common stock will be reduced from approximately 44.7 million to approximately 0.6 million, subject to adjustment to give effect to the treatment of any fractional shares that stockholders would have received in the reverse stock split. No fractional shares will be issued in connection with the reverse stock split, and stockholders who would otherwise be entitled to receive a fractional share will be entitled to have such fractional share rounded up to the next whole share. Proportional adjustments will be made to the number of shares of the Company’s common stock issuable upon exercise or conversion of the Company’s preferred stock, warrants and equity awards, as well as the applicable exercise or conversion prices, and the number of shares reserved for issuance under the Company’s equity compensation plan.

Avenue’s transfer agent, VStock Transfer, LLC, is acting as the exchange agent for the reverse stock split. VStock Transfer, LLC will provide instructions to stockholders regarding the process for exchanging physical share certificates. Avenue does not expect that stockholders holding their shares in book-entry form or through a bank, broker or other nominee need to take any action in connection with the reverse stock split. Beneficial holders are encouraged to contact their bank, broker or other nominee with any procedural questions. Additional information concerning the reverse stock split can be found in Avenue’s definitive information statement on Schedule 14C filed with the Securities and Exchange Commission on March 18, 2024.