What are the potential regulatory or compliance implications associated with the reverse split?

A 1‑for‑15 reverse split triggers a series of mandatory regulatory steps that can affect both the timing of the tradeable event and the perception of risk among investors. The company must first file a Form 8‑K with the SEC disclosing the board‑approved split, the exact exchange‑rate, the record‑date and the effective date. Because Salarius is listed on the Nasdaq Capital Market, it also has to submit a Letter of Intent and a compliance report to Nasdaq confirming that the post‑split share price will satisfy the market’s minimum bid‑price requirement (currently $4‑$5). Failure to meet this threshold could force a Nasdaq delisting notice, which would add an extra compliance burden (e.g., a 180‑day grace period, a possible appeal, and mandatory public disclosures). Shareholder approval is typically required for a reverse split of this magnitude, so the company must ensure that the proxy statement is filed, the vote is recorded, and the results are reported in a timely 8‑K filing.

From a trading perspective, these compliance filings create a short window of heightened volatility. The effective‑date announcement (5:00 p.m. ET on Aug 15) and the re‑listing on Aug 18 under a new CUSIP mean that any open orders on the pre‑split ticker will be canceled or adjusted, potentially causing order‑flow imbalances. Market participants should watch for NASDAQ compliance letters and the SEC filing of the final prospectus; their release often coincides with a brief price swing as investors digest whether the company will remain listed. A practical approach is to stay out of the stock the day before the split (Aug 14‑15) and re‑enter after the first full trading session post‑split, monitoring the bid‑ask spread and volume to confirm that liquidity has normalized and that the company has successfully met Nasdaq’s price‑floor requirement.