Acasti Pharma Announces 1-For-6 Reverse Stock Split
Portfolio Pulse from Happy Mohamed
Acasti Pharma Inc. (NASDAQ:ACST) has announced a 1-for-6 reverse stock split to regain compliance with the NASDAQ Capital Market's $1.00 minimum bid price continued listing requirement. The split will reduce the number of outstanding common shares from approximately 44.6 million to about 7.4 million and will become effective on July 10, 2023.
July 07, 2023 | 12:03 pm
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NEUTRAL IMPACT
Acasti Pharma's reverse stock split is aimed at regaining compliance with NASDAQ's minimum bid price requirement. This could potentially stabilize the company's stock price in the short term.
A reverse stock split reduces the number of shares in circulation, which can increase the per-share price. This is a common strategy for companies to regain compliance with exchange listing requirements. However, it does not change the company's overall market value. The impact on the stock price can be neutral or positive in the short term, depending on investor perception.
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