Company: VRCA
Filing Date: 2025-04-11
Form Type: PRE 14A
Source: 0001193125-25-079118
Chunk: 31

Company: Verrica Pharmaceuticals Inc.
Filing Date: 2025-04-11
Form: PRE 14A
Chunk 31
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 and needs as they arise, including equity offerings and other issuances, mergers, business combinations or other strategic transactions, asset acquisitions, stock dividends, other stock splits and other corporate purposes, although we have no current plans to issue additional securities. The effective increase in the authorized shares of common stock would also accommodate increases to the number of shares of our common stock to be authorized and reserved for future equity awards. The Board believes that having such additional authorized shares of common stock available for issuance under the certificate of incorporation will give us increased flexibility and would allow such shares to be issued without the expense and delay of a special stockholders’ meeting unless such approval is expressly required by applicable law. Criteria to be Used for Determining Whether to Implement Reverse Stock Split In determining whether to implement the Reverse Stock Split and which Reverse Stock Split ratio to implement, if any, following receipt of stockholder approval of Proposal 4, our Board may consider, among other things, various factors such as:

| • |     | the historical trading price and trading volume of our common stock; |

| • |     | the then-prevailing trading price and trading volume of our common stock and the expected impact of the Reverse Stock Split on the trading market for our common stock in the short- and long-term; |

| • |     | our ability to maintain our listing on The Nasdaq Stock Market; |

| • |     | which Reverse Stock Split ratio would result in the least administrative cost to us; |

| • |     | prevailing general market and economic conditions; and |

| • |     | whether and when our Board desires to have the additional authorized but unissued shares of common stock that will result from the implementation of a Reverse Stock Split available for issuance. |

Certain Risks and Potential Disadvantages Associated with Reverse Stock Split We cannot assure you that the proposed Reverse Stock Split will increase our stock price for a sustained period or have the desired effect of maintaining compliance with Nasdaq Marketplace Rules. The Board expects that the Reverse Stock Split will increase the market price of our common stock so that we may be able to regain and maintain compliance with the Minimum Bid Requirement. However, the effect of the Reverse Stock Split upon the market price of our common stock cannot be predicted with any certainty, and the history of similar reverse stock splits for companies in like circumstances is varied, particularly since some investors may view a reverse stock split negatively. It is possible that the per share price of our common stock after the Reverse Stock Split will not rise in proportion to the reduction in the number of