MedAvail Announces 1-For-50 Reverse Stock Split
Portfolio Pulse from Happy Mohamed
MedAvail Holdings, Inc. (NASDAQ:MDVL) has announced a 1-for-50 reverse stock split of its outstanding shares of common stock, effective from July 31, 2023. The move is part of the company's plan to regain compliance with the Minimum Bid Price Requirement of $1.00 per share for continued listing on The Nasdaq Capital Market. The reverse stock split will reduce the number of the company's outstanding common stock from approximately 81 million shares to approximately 1.6 million shares.
July 31, 2023 | 4:31 pm
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MedAvail's reverse stock split is aimed at boosting the stock price to meet Nasdaq's minimum bid price requirement. This could potentially attract more investors, but it also indicates underlying issues with the company's performance.
A reverse stock split reduces the number of shares in circulation, which can increase the stock's price per share. This can make the stock more attractive to investors who may have been put off by a low share price. However, the need for a reverse stock split often indicates underlying issues with a company's performance, as it suggests the company has been unable to maintain the minimum bid price requirement through its performance alone.
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