🧾 What This Document Is

This is an 8-K filing, a "current report" that companies must file with the SEC to announce major events that shareholders should know about. Immunic is announcing a 1-for-10 reverse stock split of its common stock. The filing includes the official legal amendment to their corporate charter and a press release explaining the move to investors.

👉 In short: Immunic is consolidating every 10 of its existing shares into 1 new share.

🏢 What The Company Does

In simple terms, Immunic is a biotechnology company developing new oral medicines for brain and nervous system diseases. They are a "late-stage" company, meaning their lead drug is in advanced (Phase 3) clinical trials.

Lead Drug: Vidofludimus calcium (IMU-838) for multiple sclerosis (MS).
Status: Phase 3 trial for relapsing MS, with key results expected by the end of 2026.
Pipeline: They have earlier-stage drugs targeting other neurodegenerative and inflammatory diseases.

💰 Financial & Share Structure Impact

The key change here isn't to revenue or profit, but to the company's share structure, which has direct financial implications.

Shares Before Split: Approximately 136 million shares of common stock outstanding.
Shares After Split: Will be reduced to approximately 13.6 million shares.
Par Value: Remains unchanged at $0.0001 per share.
Authorized Shares: The total number of shares the company is allowed to issue does not change.
Why It Matters: This drastically reduces the supply of shares, which typically leads to a higher price per share.

🚀 The Key Move: Reverse Stock Split Mechanics

The Board chose a 1-for-10 ratio. Here’s exactly what happens:

Automatic Consolidation: Every 10 old shares become 1 new share. No action is needed from shareholders.
No Fractional Shares: If your holdings aren't perfectly divisible by 10, you won't get a piece of a share. Instead, the company will sell those fractional pieces on the market and pay you your portion of the cash.
All Securities Adjusted: This isn't just for regular stock. All outstanding stock options, warrants, and restricted stock units will also be adjusted. Their share quantities will be divided by 10, and their exercise prices will be multiplied by 10.
Effective Date: The split takes effect at 12:01 AM Eastern Time on April 27, 2026. Trading on a split-adjusted basis begins that same morning.

📦 Why They're Doing This: The Catalyst

This isn't just a random financial maneuver. The primary reason is to fulfill a contractual obligation from a financing deal.

The Deal: On February 12, 2026, Immunic entered into a securities purchase agreement with certain investors.
The Requirement: That agreement contained a clause requiring the company to effect a reverse split. This is common in biotech financing; investors often want the stock price to stay above certain levels (like Nasdaq's $1 minimum) to avoid delisting risk.
The Approval: Shareholders greenlit the idea of a reverse split (between 1-for-10 and 1-for-30) at a special meeting on April 14, 2026. The Board then officially picked the 1-for-10 ratio.

🔮 What's Next & Trading Implications

New Ticker & CUSIP: The stock will continue trading on the Nasdaq Capital Market under the symbol IMUX, but it will have a new CUSIP number: 4525EP200.
Immediate Impact: The stock price will open approximately 10x higher on April 27 than it closed at on April 24. If it closed at $0.50, it would open around $5.00.
Company Focus: With the financing requirement met, Immunic's focus remains squarely on its MS clinical trial, with top-line data expected by year-end 2026. This split is a financial housekeeping item to support their operational runway.

⚖️ Big Picture: Strengths & Risks

👍 Potential Strengths:

Nasdaq Compliance: Helps maintain the company's listing on a major exchange, which is crucial for investor confidence and institutional ownership.
Investor Psychology: A higher nominal share price can attract some investors and funds that have policies against buying low-priced "penny stocks."
Fulfills Obligation: Satisfies a key condition from their recent financing, keeping that capital deal intact.

⚠️ Key Risks:

Reduced Liquidity: A lower share count can sometimes lead to higher stock price volatility and wider bid-ask spreads.
No Fundamental Change: This action does not change the company's market cap, underlying business, or cash position. It's purely cosmetic.
Historical Precedent: Reverse splits are often (but not always) associated with stocks that have declined significantly. It can be a negative signal to the market if not paired with strong operational progress.

🔍 The Details: Handling Fractional Shares

This is a common question. If you owned 15 shares, you'd become entitled to 1.5 shares after the split. Since you can't get half a share, here's the process:

Your 15 old shares become 1 new whole share.
That "half" share is pooled with all other fractional shares from other investors.
The company's transfer agent sells that entire pool of aggregated shares on the open market.
You receive a cash payment for your proportionate share of the sale proceeds. This payment comes "without interest" and will be made "as soon as practicable" after the effective date.

📞 Contact Information

For further questions, Immunic's investor relations contacts are:

Jessica Breu, Vice President Investor Relations and Communications: +49 89 2080 477 09, [email protected]
US IR Contact: Rx Communications Group, Paula Schwartz: +1 917 633 7790, [email protected]
US Media Contact: KCSA Strategic Communications, Caitlin Kasunich: +1 212 896 1241, [email protected]

🧠 The Analogy

Imagine Immunic's total company value is a large pizza. Before the split, that pizza was cut into 136 million tiny, sliver-like slices (shares). A reverse split is like taking that same pizza and re-cutting it into only 13.6 million much larger slices. You might own fewer slices, but each slice is substantially bigger and easier to handle. The total amount of pizza (company value) hasn't changed.

🧩 Final Takeaway

Immunic is executing a mandatory 1-for-10 reverse stock split on April 27, 2026, primarily to comply with terms from a recent financing deal. This action reduces the share count tenfold, raising the stock price proportionally, but does not change the company's fundamental value or its critical path to MS trial data by year-end. It's a financial recalibration, not a business transformation.

IMUX Executes 1-for-10 Reverse Stock Split on April 27