• Skye Bioscience (NASDAQ:SKYE) is implementing a 1-for-8 reverse stock split scheduled for August 24, 2026.
• The company is set to merge with Redx Pharma, forming Fibrx Therapeutics, which will focus on fibrosis treatments.
• The combined entity has secured $125 million in financing to support operations and advance its lead drug program into 2029.

Skye Bioscience (NASDAQ:SKYE), a leading biotechnology company, has announced an upcoming 1-for-8 reverse stock split scheduled for August 24, 2026. A reverse stock split is a corporate action that reduces the number of a company's outstanding shares. In this case, shareholders will receive one new share for every eight shares they currently hold.

This corporate action is part of a larger strategic move. Skye Bioscience has a definitive agreement to merge with Redx Pharma, as highlighted by defenseworld.net. The combined entity will be named Fibrx Therapeutics and will focus on developing innovative fibrosis treatments. The merger is expected to be finalized in the fourth quarter of 2026.

In connection with the merger, the companies have secured about $125 million in financing from institutional investors. This crucial funding is intended to support the new company's operations into 2029. It will also help advance the lead drug program, RXC008, through its Phase 2 clinical trial, as reported by GlobeNewswire.

Following the transaction, the ownership of Fibrx Therapeutics will be divided. Pre-transaction Redx Pharma equity holders are expected to own approximately 59.75% of the new company. The investors participating in the concurrent financing are anticipated to hold about 34.87% of the shares.

Currently, Skye Bioscience's stock is trading at $0.36, which is a decrease of 13.51% for the day. The company's market capitalization, or total value of all its shares, is approximately $12.62 million. The reverse split will increase the price per share, which can help the new company meet Nasdaq's listing requirements.