Moleculin Biotech, Inc. (NASDAQ: MBRX) announced a 1‑for‑25 reverse stock split that will take effect at 12:01 a.m. Eastern Time on December 1, 2025. The split will consolidate every 25 shares into one, reducing the number of shares outstanding from roughly 51.7 million to about 2.1 million while keeping the nominal par value at $0.001 per share.
The reverse split is a direct response to a Nasdaq deficiency letter issued on June 27, 2025, which cited the company’s share price falling below the $1.00 minimum bid price for 30 consecutive business days. Nasdaq granted Moleculin a compliance deadline of December 24, 2025. By increasing the per‑share price, the reverse split brings the stock back into compliance and helps the company avoid a potential delisting.
The transaction does not alter Moleculin’s market capitalization or the ownership percentage of existing shareholders. Shareholders will receive one new share for every 25 held, and any fractional shares will be paid in cash. The change is purely structural and preserves the company’s equity base while meeting exchange listing requirements.
Moleculin’s financial profile underscores the urgency of the split. The company has a high cash burn rate and has not secured additional financing to support its Phase 3 trial of the lead program Annamycin. Prior Nasdaq compliance issues also included a shortfall in minimum stockholders’ equity. The stock has fallen 86.29 % over the past year, and the reverse split is intended to stabilize the share price and signal a commitment to meeting regulatory standards.
In pre‑announcement trading, the stock fell 20.6 % on November 26 and 22.0 % on November 27, reflecting investor concern that a reverse split often signals financial distress. Management has framed the move as a necessary step to regain compliance and maintain market access, rather than a sign of operational failure.
Walter Klemp, Chairman and CEO, will discuss the reverse split and the company’s broader strategy at a virtual investor event on December 2, 2025. He emphasized the importance of meeting Nasdaq’s requirements and highlighted the need for additional financing to support ongoing clinical development.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.