In continued preparation for its planned uplisting to the NASDAQ Capital Market, Stellar Biotechnologies recently announced that it will proceed with a consolidation of its issued and outstanding shares on the basis of one post-consolidated common share for every 10 pre-consolidated shares, pending regulatory approval. The reverse split is intended to fulfill one of the quantitative requirements for listing on the NASDAQ exchange.
“The reverse stock split is a key step in our growth strategy,” Frank Oates, president and chief executive officer of Stellar, stated in a news release. “We believe that the proposed uplisting to the NASDAQ Capital Market offers a number of advantages including the opportunity to improve liquidity for our shareholders and to increase Stellar’s visibility in the broader investment community and with institutional investors.”
Although the reverse stock split was approved by Stellar’s board of directors on August 26, the company is currently awaiting approval from the Financial Industry Regulatory Authority and the TSX Venture Exchange before moving forward. With all required paperwork submitted, Stellar anticipates that the consolidation could become effective as early as next week.
If the company is successful in its efforts to uplist to the NASDAQ Capital Market, it will be in a strong strategic position to continue building on its recent financial performance. In its fiscal quarter ending June 30, Stellar recorded a 117 percent year-over-year increase in revenues on its way to achieving a net income of approximately $464,000.
As the leader in the sustainable manufacture of keyhole limpet hemocyanin (KLH), the company is benefitting from increased market demand as biotechnology firms continue to expand their pipelines of immunotherapies based on KLH protein. Following a strategic collaboration with Ostiones Guerreros SA de CV implemented earlier this year, Stellar has positioned itself as the only company with a reliable and scalable supply of KLH to meet this growing demand. As its roster of customers with successful therapeutic candidates approach FDA approval and commercialization, this advantage should provide an opportunity for the company to achieve rapid and sustainable market growth.
Stellar’s proposed move to the NASDAQ exchange is expected to significantly broaden its investment community, which could prove to be immensely beneficial as it looks to accelerate the development of its programs in response to rising market demand.
For more information, visit www.stellarbiotech.com