Moleculin Biotech Inc. (NASDAQ:MBRX) saw its shares tumble 20.6% in premarket trading on Wednesday after unveiling plans for a 1-for-25 reverse stock split scheduled to take effect on December 1, 2025.
Under the approved structure, every 25 existing shares will be combined into a single share, cutting the number of outstanding common shares from roughly 51.7 million to about 2.1 million. The company noted that its stock will continue to trade under the “MBRX” ticker, though it will receive a new CUSIP identifier.
The biotech firm also clarified that fractional shares will not be issued following the consolidation. Shareholders who would otherwise receive fractional amounts will instead be compensated with cash payments.
Importantly, the reverse split will not affect Moleculin’s authorized share capital, which will remain at 500 million shares, nor will it alter the stock’s par value of $0.001.
Companies typically pursue reverse splits to lift their per-share price, often in an effort to stay compliant with minimum listing rules on major exchanges. While the move does not change the overall value of an investor’s stake, such actions are commonly interpreted as a sign of financial strain—an outlook reflected in the steep premarket decline.