Conduit Pharmaceuticals Navigates Nasdaq Compliance with Reverse Stock Split

Conduit Pharmaceuticals, a biopharmaceutical company that transitioned from a real estate-focused special purpose acquisition company (SPAC), is undertaking a 1-for-15 reverse stock split to address Nasdaq compliance issues and bolster its financial position. Currently holding a market capitalization of $7.5 million, the company faces potential delisting if it cannot meet the exchange’s minimum bid price requirements.

From Real Estate to Biotech: A Strategic Shift

Originally launched in 2021 as Murphy Canyon Acquisition, the company initially raised approximately $132 million in its 2022 initial public offering with the intent of acquiring businesses in the real estate sector. However, in September 2023, a significant strategic shift occurred with the merger of Murphy Canyon Acquisition and Conduit Pharmaceuticals, redirecting the company’s focus to the development of clinical-stage drug candidates. Following the merger, the company’s stock began trading on the Nasdaq under the ticker symbol “CDT”.

Financial Challenges and the Demand for a Reverse Stock Split

Despite the strategic realignment and the licensing of compounds from AstraZeneca, Conduit Pharmaceuticals has experienced financial difficulties. The stock reached a 52-week low in January 2025, and analysts have assessed the company’s financial health as weak. To avoid delisting from the Nasdaq, shareholders approved a 1-for-15 reverse stock split, which is intended to artificially increase the share price. The company has also secured approval to issue new shares related to option exercises and the conversion of promissory notes. Nasdaq

Details of the Reverse Stock Split

The 1-for-15 reverse stock split became effective on May 19, 2025, with trading on a split-adjusted basis beginning on May 20, 2025, under the same ticker symbol, “CDT”. StockTitan Following the split, the total number of outstanding shares has been reduced to approximately 755,900. Nasdaq Stockholders holding shares in electronic form will experience automatic adjustments without needing to take action. Cash payments will be provided for any fractional shares resulting from the split. Nasdaq

Looking Ahead: Stabilizing the Balance Sheet and Advancing the Pipeline

The immediate priorities for Conduit Pharmaceuticals are to stabilize its balance sheet and advance its drug pipeline. The success of these efforts, along with the clinical data from the licensed compounds, will determine whether the company can maintain its Nasdaq listing and regain investor confidence. A subsequent 1-for-8 reverse stock split was also approved, effective October 10, 2025, reducing the total number of issued and outstanding common shares to approximately 1,352,448. Panabee