TransCode Therapeutics, a clinical-stage RNA oncology company, announced a 1-for-28 reverse stock split effective May 15, 2025, as part of its strategy to maintain compliance with Nasdaq listing requirements. The split will reduce the company's outstanding common stock from approximately 23.3 million shares to about 833,620 shares.
The decision, approved by both shareholders and the board of directors, is primarily aimed at increasing the company's per-share price to meet Nasdaq's minimum bid price requirement. Investors holding TransCode stock will see their share count proportionally reduced, with no fractional shares issued. Instead, fractional amounts will be rounded up to the nearest whole share.
Vstock Transfer LLC will serve as the exchange agent for the stock split, and the company will continue trading under its existing ticker symbol, 'RNAZ'. The new CUSIP number for the adjusted shares will be 89357L 501.
This strategic financial maneuver is significant for TransCode, which is focused on developing RNA therapeutics to treat cancer. By maintaining its Nasdaq listing, the company preserves its ability to access capital markets and continue its research into innovative cancer treatments, particularly its lead therapeutic candidate TTX-MC138, which targets metastatic tumors overexpressing microRNA-10b.
Reverse stock splits are typically used by companies to boost their stock price and signal financial stability to investors. While the total market capitalization remains unchanged, the move can help prevent potential delisting and improve investor perception of the company's market value.
The implementation of this reverse stock split underscores TransCode's commitment to maintaining strong financial positioning and continuing its mission of developing advanced RNA therapeutic solutions for cancer treatment.
