KemPharm Files Preliminary Proxy for Special Meeting of Stockholders
CELEBRATION, Fla., Sept. 25, 2020 (GLOBE NEWSWIRE) -- KemPharm, Inc. (KemPharm, or the Company) (OTCQB: KMPH), a specialty pharmaceutical company engaged in the discovery and development of
proprietary prodrugs, today filed a preliminary proxy statement on Schedule 14A (the Preliminary Proxy Statement) with the U.S. Securities and Exchange Commission (SEC) to hold a special meeting of
stockholders to authorize a potential reverse stock split of the Company’s common stock (the Special Meeting). If authorized, and subsequently if the Company’s Board of Directors determines that
business conditions warrant making it effective, this reverse stock split would potentially reduce the number of common shares outstanding and thereby increase the bid price of KemPharm’s common
stock to a level which would potentially allow the Company to meet the bid price requirement for re-listing on the Nasdaq Capital Market. In order to be eligible to re-list on the Nasdaq Capital
Market, the Company would need to satisfy the other initial listing requirements in addition to the bid price requirement, as well as review and approval of a listing application by Nasdaq.
As previously disclosed, the Company continues to work with its financial advisors through a process to restructure its outstanding debt and to position itself to be in compliance with the initial listing requirements for re-listing its common stock on the Nasdaq Capital Market. The Company cannot predict when or if any such debt restructure will occur or what the terms of any debt restructure may be. The record and meeting dates for the Special Meeting have not yet been announced.
“The filing of this preliminary proxy statement to authorize a potential reverse stock split is an initial step in the process to potentially regain KemPharm’s listing on the Nasdaq Capital Market,” said Travis Mickle, Ph.D., President and CEO of KemPharm. “We believe that re-listing our common stock on a national exchange could potentially provide access to a broader stockholder base, including institutional investors, and enable greater trading efficiency that may allow us to capitalize on our potential upcoming milestones associated with the New Drug Application for our lead product candidate, KP415, including its PDUFA date on March 2, 2021. However, we only intend to make a reverse split effective if we determine that doing so would be in the best interest of the Company and our stockholders.”