Channel Therapeutics Corporation (NASDAQ:CHRO) shares surged on Friday following the announcement of a reverse stock split designed to support its upcoming corporate transformation and meet exchange listing requirements.

The clinical-stage biotech company, focused on developing non-opioid treatments for pain, revealed a 10-for-1 reverse stock split of its common shares.

The move aims to boost the per-share trading price and align with NYSE American listing standards ahead of a proposed merger with LNHC, Inc. and an associated $50 million capital infusion led by Murchinson.

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The reverse stock split will become effective on July 1, 2025, before the market opens. Trading of the adjusted shares is set to begin the following day, July 2, under the new name Pelthos Therapeutics Inc.

While the company’s ticker symbol will initially remain “CHRO,” it will change to “PTHS” upon the closing of the merger.

As a result of the split, shareholders will receive one new share for every 10 currently held, reducing outstanding shares from about 6.5 million to approximately 648,500. Importantly, ownership percentages for shareholders will not be affected, and fractional shares will be rounded up.

Stockholders with book-entry holdings or those using brokers do not need to take any action.

The company’s transfer agent, Nevada Agency and Transfer Company (NATCO), will provide details about the changes in share ownership following the split.

Price Action: CHRO shares are trading higher by 2.56% to $1.200 at last check Friday.

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