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Entero Therapeutics, Inc. Announces Reverse Stock Split

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Entero Therapeutics (NASDAQ: ENTO), a clinical-stage biopharmaceutical company focused on GI disease therapies, announced a 1-for-3 reverse stock split effective August 18, 2025. The split will reduce outstanding shares from 4.77 million to approximately 1.59 million.

The reverse split aims to regain compliance with Nasdaq's minimum bid price requirement of $1.00 per share. Stockholders will receive cash in lieu of fractional shares. The company's interim CEO emphasized that maintaining Nasdaq listing visibility is crucial for enhancing shareholder value.

Entero Therapeutics (NASDAQ: ENTO), azienda biofarmaceutica in fase clinica specializzata in terapie per le malattie gastrointestinali, ha annunciato un raggruppamento azionario inverso 1 per 3 con efficacia dal 18 agosto 2025. L'operazione ridurrà le azioni in circolazione da 4,77 milioni a circa 1,59 milioni.

Il raggruppamento mira a ristabilire la conformità al requisito di prezzo minimo per azione di Nasdaq, fissato a 1,00 USD. Gli azionisti riceveranno il pagamento in contanti per eventuali frazioni di azioni. L'amministratore delegato ad interim ha sottolineato che mantenere la visibilità sulla lista Nasdaq è fondamentale per aumentare il valore per gli azionisti.

Entero Therapeutics (NASDAQ: ENTO), compañía biofarmacéutica en fase clínica centrada en tratamientos para enfermedades gastrointestinales, anunció un split inverso de 1 por 3 con vigencia a partir del 18 de agosto de 2025. La operación reducirá las acciones en circulación de 4,77 millones a aproximadamente 1,59 millones.

El split busca recuperar el cumplimiento del requisito mínimo de precio por acción de Nasdaq, de 1,00 USD. Los accionistas recibirán efectivo en lugar de fracciones de acciones. El director general interino destacó que mantener la visibilidad en Nasdaq es clave para potenciar el valor para los accionistas.

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Entero Therapeutics (NASDAQ: ENTO), société biopharmaceutique en phase clinique spécialisée dans les traitements des maladies gastro-intestinales, a annoncé un regroupement d'actions inversé de 1 pour 3 prenant effet le 18 août 2025. Cette opération réduira le nombre d'actions en circulation de 4,77 millions à environ 1,59 million.

Le regroupement vise à retrouver la conformité à l'exigence de prix plancher de Nasdaq, fixée à 1,00 USD par action. Les actionnaires recevront une contrepartie en espèces pour les fractions d'actions. Le directeur général par intérim a souligné que le maintien de la visibilité sur Nasdaq est essentiel pour accroître la valeur pour les actionnaires.

Entero Therapeutics (NASDAQ: ENTO), ein biopharmazeutisches Unternehmen in klinischer Phase mit Fokus auf Therapien für gastrointestinale Erkrankungen, hat einen 1-zu-3 Reverse Stock Split angekündigt, der am 18. August 2025 wirksam wird. Der Split reduziert die ausstehenden Aktien von 4,77 Millionen auf rund 1,59 Millionen.

Der Reverse Split zielt darauf ab, die Einhaltung der Mindestnotierungsanforderung der Nasdaq von 1,00 USD je Aktie wiederherzustellen. Anteilseigner erhalten für Bruchstücke von Aktien eine Barauszahlung. Der interimistische CEO betonte, dass die Sichtbarkeit an der Nasdaq entscheidend zur Steigerung des Aktionärswerts sei.

Positive
  • Potential to maintain Nasdaq listing through compliance with minimum bid price requirement
  • Improved stock price visibility through higher per-share price
Negative
  • Reverse split indicates previous inability to maintain $1.00 minimum share price
  • No fundamental change in company value or market capitalization

Insights

ENTO's 1:3 reverse split aims to maintain Nasdaq listing by boosting share price, but doesn't address underlying valuation concerns.

Entero Therapeutics has announced a 1-for-3 reverse stock split scheduled to take effect on August 18, 2025. This financial maneuver will reduce the company's outstanding shares from approximately 4.77 million to 1.59 million shares. The primary motivation is regulatory compliance � specifically to meet Nasdaq's minimum bid requirement of $1.00 per share under Listing Rule 5550(a)(2).

This reverse split is a technical adjustment rather than a reflection of business fundamentals. While the company's total market capitalization remains unchanged, each share will theoretically be worth three times its previous value. Shareholders will receive one new share for every three they currently hold, with cash payments issued for fractional shares.

What's notably absent from this announcement is any discussion of the underlying factors that led to the share price decline below the Nasdaq threshold in the first place. As a clinical-stage biopharmaceutical company without marketable products, ENTO likely faces challenges with cash burn and pipeline progress. The interim CEO's statement about maintaining Nasdaq listing for "visibility and credibility" signals that management views continued exchange listing as crucial for capital raising potential and institutional investor access.

For existing shareholders, this split doesn't change their proportional ownership of the company, but it does raise questions about future dilution if the company needs additional financing. Reverse splits are often viewed as warning signs in the biotech sector, particularly when implemented primarily for exchange compliance rather than as part of a broader strategic initiative.

Boca Raton, Florida--(Newsfile Corp. - August 14, 2025) - Entero Therapeutics, Inc. (NASDAQ: ENTO) (the "Company"), a clinical-stage biopharmaceutical company specializing in the development of targeted, non-systemic therapies for gastrointestinal (GI) diseases, announced that, it will effect a 1 for 3 reverse stock split of its common stock. The Company expects its common stock to begin trading on a split-adjusted basis on the Nasdaq Capital Market as of the commencement of trading on August 18, 2025.

The reverse stock split was approved by the Board of Directors and shareholders of the Company and is being implemented as part of a plan by the Company to regain compliance with the continued listing requirement under Nasdaq Listing Rule 5550(a)(2), which requires maintenance of a minimum bid price of $1.00 per share for continued listing on the Nasdaq Capital Market.

At the effective time of the reverse stock split, every 3 shares of the Company's common stock issued and outstanding will be combined into one share of common stock issued and outstanding. This will reduce the Company's outstanding common stock from approximately 4.77 million shares to approximately 1.59 million shares. No fractional shares of Common Stock will be issued in connection with the reverse stock split. Stockholders of record who otherwise would be entitled to receive fractional shares, will be entitled to receive cash (without interest) in lieu of fractional shares.

Richard Paolone, the Company's Interim Chief Executive Officer, commented, "The reverse split is a necessary step in our efforts to maintain our listing on the Nasdaq market. The visibility and credibility that comes with a Nasdaq listing is an important component in our efforts to enhance shareholder value."

About Entero Therapeutics, Inc.

Entero Therapeutics, Inc., is a late clinical-stage biopharmaceutical company focused on the development of targeted, non-systemic therapies for gastrointestinal (GI) diseases. The Company's programs address significant unmet needs in GI health and comprise development of Adrulipase, a recombinant lipase enzyme designed to enable the digestion of fats and other nutrients in cystic fibrosis and chronic pancreatitis patients with exocrine pancreatic insufficiency. For more information visit .

Forward Looking Statements

This press release contains "forward-looking statements" Forward-looking statements reflect our current view about future events. When used in this press release, the words "anticipate," "believe," "estimate," "expect," "future," "intend," "plan," or the negative of these terms and similar expressions, as they relate to us or our management, identify forward-looking statements. Such statements, include, but are not limited to, statements contained in this press release relating to our business strategy, our future operating results and liquidity and capital resources outlook. Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Our actual results may differ materially from those contemplated by the forward-looking statements. They are neither statements of historical fact nor guarantees of assurance of future performance. We caution you therefore against relying on any of these forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, without limitation, our ability to raise capital to fund continuing operations; our ability to protect our intellectual property rights; the impact of any infringement actions or other litigation brought against us; competition from other providers and products; our ability to develop and commercialize products and services; changes in government regulation; our ability to complete capital raising transactions; and other factors relating to our industry, our operations and results of operations. Actual results may differ significantly from those anticipated, believed, estimated, expected, intended or planned. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We cannot guarantee future results, levels of activity, performance or achievements. The Company assumes no obligation to update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this release except as may be required under applicable securities law.

For further information, please contact:

Entero Therapeutics, Inc.
777 Yamato Road, Suite 502
Boca Raton, FL 33431
Phone: (561) 589-7020
[email protected]

Investor contact information:
Entero Investor Relations
[email protected]

To view the source version of this press release, please visit

FAQ

What is the ratio of Entero Therapeutics (ENTO) reverse stock split?

Entero Therapeutics announced a 1-for-3 reverse stock split, meaning every 3 shares will be combined into one share.

When will ENTO's reverse stock split take effect?

The reverse stock split will take effect and begin trading on a split-adjusted basis on the Nasdaq Capital Market on August 18, 2025.

How many shares will Entero Therapeutics have outstanding after the reverse split?

After the reverse split, ENTO's outstanding shares will reduce from 4.77 million to approximately 1.59 million shares.

Why is Entero Therapeutics (ENTO) conducting a reverse stock split?

ENTO is conducting the reverse split to regain compliance with Nasdaq's minimum bid price requirement of $1.00 per share to maintain its listing on the Nasdaq Capital Market.

What happens to fractional shares in ENTO's reverse stock split?

Stockholders entitled to fractional shares will receive cash payment in lieu of fractional shares (without interest).
Entero Therapeutics

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2.89M
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Biotechnology
Pharmaceutical Preparations
United States
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