(RTTNews) - Channel Therapeutics Corp. (CHRO) announced Friday a 10-for-1 reverse stock split in connection with the closing of its merger with Pelthos Therapeutics and a concurrent $50.1 million private placement.
The reverse stock split is intended to raise the market price of the company's common stock and support compliance with NYSE American listing requirements. The split will become effective prior to market open on July 1, 2025.
At that time, every 10 shares of Channel's common stock will be combined into one share, reducing outstanding shares from approximately 6.5 million to about 648,000. The company's stock will begin trading on a split-adjusted basis under the new name Pelthos Therapeutics Inc. on July 2, 2025, with a new ticker symbol, PTHS.
The company's $50.1 million private placement is led by Murchinson and other strategic investors, providing capital to support the merged entity's future development plans.
Stockholders' percentage ownership will remain unchanged, and no action is required for those holding shares in book-entry or through a broker. Fractional shares will be rounded up.
Channel is developing non-opioid, non-addictive pain treatments, with a focus on targeting the sodium ion channel NaV1.7 for chronic and acute pain indications.
Currently, CHRO is trading at $1.34, up by 14.5 percent on the New York Stock Exchange.
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