Cara Therapeutics (CARA) said Monday its board approved a 1-for-3 reverse split of its outstanding shares.

The reverse stock split will take effect at 4:01 p.m. Eastern time on Tuesday, the company said.

Cara said the split will reduce the number of issued and outstanding shares to around 1.5 million from about 4.6 million.

Following the expected closing of its merger with Tvardi Therapeutics on Wednesday, the combined company is projected to have about 9.4 million shares outstanding. Cara said the shares will begin trading under the new symbol TVRD and the new name "Tvardi Therapeutics."

Shares of Cara were up over 10% in recent trading.

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