CNS Pharmaceuticals Announces 1-for-12 Reverse Stock Split

CNS Pharmaceuticals has announced a 1-for-12 reverse stock split, effective July 22, 2025. The move aims to maintain the company's Nasdaq listing and reduce the number of outstanding shares. CNS is developing anti-cancer drug candidates for primary and metastatic cancers of the brain and central nervous system. The reverse stock split will affect all stockholders uniformly and will not alter their percentage interest in the company's equity.

CNS Pharmaceuticals, Inc. (CNSP) has announced a 1-for-12 reverse stock split, effective July 22, 2025. The move is aimed at maintaining the company's Nasdaq listing and reducing the number of outstanding shares. The reverse stock split will consolidate every 12 shares into one, resulting in a new authorized share count of 25 million [2].

The biopharmaceutical company, which specializes in developing treatments for primary and metastatic cancers in the brain and central nervous system, has been working on anti-cancer drug candidates. The reverse stock split is a strategic move to meet Nasdaq's minimum bid price requirement of $1.00 per share, which CNS Pharmaceuticals has been struggling to meet [3].

The reverse stock split will affect all stockholders uniformly, and no stockholder's percentage interest in the company's equity will be altered, except for minor differences caused by fractional shares, which will be settled in cash. The par value of the common stock will remain unchanged at $0.001 per share [2].

This corporate action is often used by companies to increase their per-share price and meet exchange listing requirements. However, it can also signal potential capital structure concerns, as reverse splits are generally viewed negatively, indicating prolonged share price deterioration and potential challenges in securing financing [3].

CNS Pharmaceuticals' drug candidate, TPI 287, is an abeotaxane that has shown promising clinical efficacy data, with the potential to cross the blood-brain barrier and treat CNS tumors. The company has been conducting clinical trials involving over 350 patients, and TPI 287 has demonstrated an excellent safety profile and high tolerability among patients [1].

While the reverse stock split is a necessary step to maintain Nasdaq listing, it may also indicate difficulties in securing the necessary financing for the company's research pipeline without significant dilution to existing shareholders [3].

References:
[1] https://www.reddit.com/r/Business_NewsRamp/comments/1m35mrl/cns_pharmaceuticals_announces_reverse_stock_split/
[2] https://www.gurufocus.com/news/2987382/cns-pharmaceuticals-announces-reverse-stock-split-cnsp-stock-news
[3] https://www.stocktitan.net/news/CNSP/cns-pharmaceuticals-announces-reverse-stock-nans16ryh2br.html