- Channel Therapeutics (CHRO, Financial) announces a 10-for-1 reverse stock split effective July 1, 2025.
- The split coincides with a merger with LNHC and a $50.1 million private placement.
- Post-merger, the company will be renamed Pelthos Therapeutics and trade under the ticker "PTHS".
Channel Therapeutics (CHRO), a company focused on non-opioid pain treatment, has announced a 10-for-1 reverse stock split of its common stock, set to take effect on July 1, 2025. This strategic move aims to increase the company's stock price, helping it meet the NYSE American's listing requirements. Following the stock split, Channel's outstanding shares will be reduced from approximately 6.48 million to about 648,501.
This financial restructuring accompanies Channel Therapeutics' merger with LNHC, after which the company will adopt the name Pelthos Therapeutics and start trading under the new ticker symbol "PTHS". The transformation is part of a broader strategy to position the company as a leader in non-opioid pain therapies.
Furthermore, Channel Therapeutics has secured a significant $50.1 million private placement led by Murchinson, providing essential capital for the company to advance its therapeutic pipeline. This funding is especially crucial for progressing its targeted sodium ion-channel NaV1.7 therapeutics aimed at treating various types of chronic and acute pain.
The company's reverse stock split addresses common challenges faced by smaller public companies aiming for major exchange listings, which often require a minimum share price. By consolidating its shares, Channel Therapeutics plans to enhance its market presence while maintaining all shareholders' percentage ownership unchanged.
