Kalytera Therapeutics Cancels Vote On Potential Reverse Split Transaction

Kalytera Therapeutics (TSXV: KLY) announced in an after hours news release on Friday evening that it will be removing the option to vote on a share consolidation at the annual meeting to be held on Monday evening. The cancellation is a result of the push back seen from major shareholders on the potential for a 12 to 1 reverse split.

While tucked away in a Sedar filing as early as June 28, the first announcement to shareholders came on July 5 in a news release dedicated to the annual meeting, where the reverse split was referred to as a “potential consolidation.” Management justified the consolidation on the basis of the need “to generate interest in the Company among certain investors, to comply with the pricing policies of the TSX Venture Exchange (the “TSXV”), to improve the trading liquidity of the Common Shares and to reduce volatility in the price of the Common Shares.”

The move would have seen Kalytera’s 499,335,301 outstanding common shares reduced down as low as 41,611,275. Major shareholders of the equity however were highly critical of the move, despite the lack of share movement. Rather than generate interest among certain shareholders, the suggestion of such a move had the effect of capital moving out of the equity.

Under the terms for the potential consolidation set forth in the annual information form, management was seeking approval to conduct the consolidation at a later date, at their sole discretion when deemed to be appropriate.

Kalytera Therapeutics closed Friday’s session at $0.04, flat on the day.

Information for this briefing was found via Sedar and Kalytera Therapeutics. The author is no position in this security and has no affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.