Former meme stock Jaguar Health (NASDAQ:JAGX) has won the approval of certain measures meant to help maintain its Nasdaq listing. These include an extension to Aug. 13 to regain compliance by getting its price over $1 as well as JAGX stockholder approval of a potential reverse stock split.
Jaguar Health is delaying the reverse split as it seeks approval on a preventative treatment of cancer therapy-related diarrhea. The study is called OnTarget.
This news is sending JAGX stock up 20% as of this writing. The stock now trades at a price of about 11 cents per share and a market capitalization of roughly $25 million.
JAGX Stock: A Reprieve
Jaguar came public in 2015 under the name Jaguar Animal Health, offering 2.86 million shares at $7 apiece. The initial public offering (IPO) raised about $20 million. At the time, the company was selling Canalevia to treat diarrhea in dogs.
Canalevia and other Jaguar treatments are based on a drug called crofelemer. In early 2021, Jaguar was pitching the drug as a treatment for diarrhea related to Covid-19.
During that year, Jaguar struck a $6 million royalty deal for the drug, indicating potential. Later in the year, however, the firm announced a 1-for-3 reverse stock split.
Jaguar has had four reverse splits in its history. The first, a 1-for-15 reverse split, came about in 2018. The most recent, a 1-for-75 reverse split, occurred just last year. InvestorPlace contributor William White covered the last split as JAGX stock seemed to gain 6,800% in one day.
Jaguar reported sales of $9.76 million for 2023 and a net loss of $41.3 million, or an EPS loss of $1.73.
What Happens Next?
At this point, the jokes write themselves. A fifth reverse split may be coming for JAGX stock as Jaguar Health looks to maintain its listing and searches for customers for its diarrhea medication.
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On the date of publication, Dana Blankenhorn did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
