Cyclacel Pharmaceuticals Announces Stock Split

Rhea-AI Summary

Cyclacel Pharmaceuticals (NASDAQ: CYCC) has announced a 1-for-15 reverse stock split effective July 7, 2025. The company's common stock will continue trading on the Nasdaq Capital Market under the symbol "CYCC" with a new CUSIP number 23254L876.

Following the split, every 15 shares will automatically convert into one share, with fractional shares being rounded up or down. The total number of outstanding shares will decrease from 23,759,475 to 1,583,965. The reverse split, approved by both the board and stockholders, will not alter shareholders' percentage ownership in the company, except for minor adjustments due to fractional shares.

Positive

• Potential to maintain Nasdaq listing compliance through higher share price
• Reduced number of outstanding shares may improve stock marketability
• No change in shareholders' percentage ownership post-split

Negative

• Indicates potential share price concerns requiring artificial adjustment
• May suggest underlying business challenges necessitating the reverse split

Insights

Financial Restructuring Specialist

Cyclacel's 1-for-15 reverse split aims to maintain Nasdaq listing requirements but signals potential financial distress without addressing fundamental issues.

Cyclacel Pharmaceuticals has announced a significant 1-for-15 reverse stock split effective July 7, 2025, a clear indication the company is taking defensive measures to maintain Nasdaq listing compliance. With the pre-split 23,759,475 shares consolidating to just 1,583,965 post-split shares, this mathematical maneuver artificially inflates the stock price without changing the company's underlying fundamental value.

Reverse splits are typically implemented when companies face potential delisting due to prolonged trading below minimum price requirements ($1 for Nasdaq). While this action prevents immediate delisting concerns, it's crucial to understand this doesn't address any underlying business challenges or improve financial health - it merely repackages existing equity.

The timing of this announcement, coming without accompanying strategic initiatives or positive operational news, suggests management is focused on market compliance rather than growth catalysts. Investors should note that companies implementing reverse splits often continue facing the same headwinds that originally depressed their share price, with many ultimately experiencing further price deterioration after the initial adjustment period.

The automatic rounding mechanism for fractional shares represents a minor but notable aspect of this action, as shareholders with positions not divisible by 15 will see slight adjustments to their ownership percentage. This technical restructuring maintains the company's Nasdaq Capital Market presence but fundamentally changes the trading dynamics of CYCC stock without addressing the root causes of its price decline.

BERKELEY HEIGHTS, N.J., July 02, 2025 (GLOBE NEWSWIRE) -- Cyclacel Pharmaceuticals, Inc. (NASDAQ: CYCC, NASDAQ: CYCCP; “Cyclacel” or the “Company”), a biopharmaceutical company developing innovative medicines, today announced that it expects to implement a 1-for-15 reverse stock split on its shares of common stock effective July 7, 2025, with trading to begin on a split-adjusted basis at the market open on that day. Trading in the shares of common stock will continue on The Nasdaq Capital Market under the symbol “CYCC”. The new CUSIP number for the shares of common stock following the reverse stock split is 23254L876.

Upon the effectiveness of the reverse stock split, every 15 shares of the Company’s issued and outstanding shares of common stock will automatically convert into one issued and outstanding share of common stock. No fractional shares will be issued as a result of the reverse stock split. Instead, any fractional shares that would have resulted from the split will be rounded up or down to the next whole number, as applicable. The reverse stock split affects all shareholders uniformly and will not alter any shareholder’s percentage interest in the Company’s outstanding shares of common stock, except for adjustments that may result from the treatment of fractional shares.

The reverse stock split at a ratio of 1-for-15 shares was approved by the Company’s board of directors and its stockholders. The Company will file a Certificate of Amendment with the Secretary of State of the State of Delaware to reflect the reverse stock split occurring on July 7, 2025. The pre-reverse stock split number of shares of common stock issued and outstanding is 23,759,475 shares and the post-reverse stock split number of shares of common stock issued and outstanding will be 1,583,965 shares.

About Cyclacel Pharmaceuticals, Inc.

Cyclacel is a clinical-stage, biopharmaceutical company developing innovative cancer medicines based on cell cycle, epigenetics and mitosis biology. The epigenetic/anti-mitotic program is evaluating plogosertib, a PLK1 inhibitor, in patients with both solid tumors and hematological malignancies. Cyclacel’s strategy is to build a diversified biopharmaceutical business based on a pipeline of novel drug candidates addressing oncology and hematology indications. For additional information, please visit www.cyclacel.com.

Forward-looking Statements

This news release contains certain forward-looking statements that involve risks and uncertainties that could cause actual results to be materially different from historical results or from any future results expressed or implied by such forward-looking statements. Such forward-looking statements include, among other things, Cyclacel’s future plans and prospects, Cyclacel’s anticipated cash runway and the planned timing of data results and continued development of plogosertib. Factors that may cause actual results to differ materially include market and other conditions, the risk that product candidates that appeared promising in early research and clinical trials do not demonstrate safety and/or efficacy in larger-scale or later clinical trials, trials may have difficulty enrolling, Cyclacel may not obtain approval to market its product candidates, the risks associated with reliance on outside financing to meet capital requirements, the risks associated with reliance on collaborative partners for further clinical trials, development and commercialization of product candidates and Cyclacel’s ability to regain and maintain compliance with Nasdaq’s continued listing requirements, although no assurance to that effect can be given. You are urged to consider statements that include the words “may,” “will,” “would,” “could,” “should,” “believes,” “estimates,” “projects,” “potential,” “expects,” “plans,” “anticipates,” “intends,” “continues,” “forecast,” “designed,” “goal,” or the negative of those words or other comparable words to be uncertain and forward-looking. For a further list and description of the risks and uncertainties the Company faces, please refer to our most recent Annual Report on Form 10-K and other periodic and other filings we file with the Securities and Exchange Commission and are available at www.sec.gov. Such forward-looking statements are current only as of the date they are made, and we assume no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

Contacts

Cyclacel Pharmaceuticals, Inc.
Datuk Dr. Doris Wong Sing Ee
Chief Executive Officer
Email: ir@cyclacel.com

© Copyright 2025 Cyclacel Pharmaceuticals, Inc. All Rights Reserved. The Cyclacel logo and Cyclacel® are trademarks of Cyclacel Pharmaceuticals, Inc.

FAQ

When will Cyclacel's (CYCC) 1-for-15 reverse stock split take effect?

The reverse stock split will take effect on July 7, 2025, with trading to begin on a split-adjusted basis at market open that day.

How many shares of CYCC will be outstanding after the reverse split?

After the 1-for-15 reverse split, Cyclacel's outstanding shares will decrease from 23,759,475 to 1,583,965 shares.

Will CYCC shareholders lose any ownership percentage due to the reverse split?

No, the reverse split will not alter any shareholder's percentage interest in Cyclacel, except for minor adjustments from fractional share rounding.

What happens to fractional shares in Cyclacel's reverse stock split?

Fractional shares resulting from the reverse split will be rounded up or down to the next whole number, as applicable.

Will Cyclacel's stock symbol change after the reverse split?

No, Cyclacel will continue trading on the Nasdaq Capital Market under the symbol CYCC, but with a new CUSIP number (23254L876).