(RTTNews) - Adial Pharmaceuticals, Inc. (ADIL), a clinical-stage biopharmaceutical company, shares slipped by 20% in premarket, following the announcement of a reverse stock split.
The company will implement a 1-for-25 reverse stock split of its common stock, par value $0.001 per share, that will become effective on February 5, 2026, at 11:59 p.m. Eastern Time.
The reverse stock split is intended to aid Adial in regaining compliance with the Nasdaq's minimum $1.00 bid price requirement by March 2, 2026, which is the 180-day period extension granted by Nasdaq on September 3, 2025, after the first 180-day period expiry.
Initially, on March 5, 2025, Nasdaq granted Adial 180 days to regain compliance with the minimum $1.00 bid price requirement, which expired on September 1, 2025.
Adial's Common Stock will continue to trade on the Nasdaq under the symbol "ADIL" and will begin trading on a split-adjusted basis when the Nasdaq opens on February 6, 2026.
The new CUSIP number for the Common Stock following the Reverse Split will be 00688A304.
The 1-for-25 Reverse Split will proportionally reduce the number of outstanding shares from approximately 27.8 million shares to approximately 1.1 million shares, and the ownership percentage of each shareholder will remain unchanged other than as a result of fractional shares.
"We believe this reverse stock split represents an important step to strengthen our capital markets profile, restore compliance with Nasdaq's minimum bid price requirement, and create a more efficient public float that supports broader institutional and long-term investor interest. said Cary Claiborne, President and Chief Executive Officer of Adial Pharmaceuticals.
VStock Transfer, LLC, will act as the firm's transfer agent as well as the paying agent for the Reverse Split.
The Company's lead investigational new drug product, AD04, is a genetically targeted, serotonin-3 receptor antagonist, therapeutic agent for the treatment of Alcohol Use Disorder (AUD) in heavy drinking patients.
Adial is currently planning to conduct a new Phase 3 clinical trial program for the treatment of AUD in subjects with certain target genotypes identified using the company's proprietary diagnostic genetic test.
ADIL closed Monday's trade at $0.21, down 1.17%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
