22nd Century Plans Reverse Stock Split To Regain Nasdaq Compliance
Portfolio Pulse from Shivani Kumaresan
22nd Century Group, Inc plans to effect a reverse stock split of its outstanding shares at a ratio of 1-for-15 to regain compliance with the minimum bid price requirement of $1.00 per share for continued listing on Nasdaq. The company's shares will begin trading on a reverse stock split-adjusted basis on July 5, 2023. Following the news, XXII shares are trading lower by 29% in premarket.
July 03, 2023 | 11:42 am
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22nd Century Group's planned reverse stock split to regain Nasdaq compliance has led to a 29% drop in premarket trading.
The announcement of a reverse stock split is often viewed negatively by investors as it indicates that the company's share price has been under pressure. This is reflected in the 29% drop in premarket trading following the announcement. The reverse split is aimed at regaining compliance with Nasdaq's minimum bid price requirement, which is critical for the company's continued listing.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100