(RTTNews) - Cara Therapeutics, Inc. (CARA), a biopharmaceutical company focused on pruritus treatments, has announced the effective date of a 1-for-12 reverse stock split. Cara's common stock begined trading on a reverse stock split-adjusted basis on Tuesday, December 31, 2024.
Following the reverse split, every 12 shares of the company's common stock will automatically combine into one share.
As part of the split, Cara's total authorized shares will decrease from 200 million to 16.67 million.
This move is aimed at helping the company regain compliance with Nasdaq's minimum bid price requirement for continued listing.
The reverse split reduced the number of outstanding shares from approximately 54.9 million to about 4.6 million, and fractional shares will be paid out in cash.
The reverse stock split will not affect stockholders' relative interests in the company, except for fractional share adjustments.
Proportional adjustments will also be made to outstanding stock options and equity incentive plans.
Cara Therapeutics is known for developing an IV formulation of difelikefalin, approved for the treatment of moderate-to-severe pruritus associated with advanced chronic kidney disease.
Currently, CARA is trading at $4.78 up by 4.12%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
