On Thursday, Aditxt Inc. (NASDAQ:ADTX) was one of the more notable movers in the market as it ended up with gains of 31% amidst heavy interest. The rally may have been linked to an announcement that the company made on Friday, and it could be a good move for investors to take a more detailed look into it in order to make up their minds.
The company is involved in the development of technologies and therapeutics that help modulate and monitor the immune system. Today, the company announced that it would effect a reverse split of its common stock in a 1 for 40 ratio. When the stock started trading on the NASDAQ on August 18, 2023, it would start on a split-adjusted basis. The ticker symbol, ADTX, would remain the same. At the annual meeting of stockholders that was held on August 16, 2023, the reverse stock split was approved. The final ratio of the reverse stock split had already been decided by the Aditxt Board of Directors.
Following the split, each block of 40 issued and outstanding common shares in the company would be exchanged for 1 share of the common stock. Any fractional shares would be rounded up to the next higher number. The CUSIP number of the stock would also be changed following the reverse split.
Once the reverse stock split becomes effective, the total number of issued and outstanding shares of the company will be reduced to 1903. The company noted in its news release that it had gone for such a move to essentially be compliant with the minimum bid price rules of NASDAQ.
On May 5, the company announced that Adimune Inc., its subsidiary unit, had inked a clinical trial agreement with the Mayo Clinic. The agreement was for advancing clinical studies targeting autoimmune diseases that affect the central nervous system (CNS). The initial focus of Adimune would be on a rare yet impairing autoimmune condition named Stiff Person Syndrome (SPS). Aditxt had established Adimune earlier in 2023 to manage its modulation therapeutic initiatives.
At the time, the company had announced that in the previous 18 months it had been making preparations for the launch of ADI 100, its modulation product candidate. During that period, the company also planned a number of clinical trials for the purpose of demonstrating the efficacy and safety of the candidate.
The co-chief executive officer of Adimune Friedrich Kapp spoke about the agreement with the Mayo Clinic. He noted that everyone at the company was pleased about the chance to work with the Mayo Clinic on the project. The collaboration would not only include clinical studies and pre-clinical studies but also go on to build upon the efforts that had been put in by the company to take forward the pre-clinical studies related to the product. It was further noted in the news release that Adimune had made plans to begin the clinical studies of ADI 100 to target those autoimmune diseases that can be mediated by GAD.