Molecular Templates Announces 1-For-15 Reverse Stock Split
Portfolio Pulse from Happy Mohamed
Molecular Templates, Inc. (NASDAQ:MTEM) has announced a 1-for-15 reverse stock split, approved by the Board and stockholders. The split will take effect after the close of trading on The Nasdaq Capital Market on August 11, 2023. The move is intended to increase the per share trading price of the company's common stock to regain compliance with the minimum bid price requirement for continued listing on The Nasdaq Capital Market. The reverse split will reduce the number of outstanding common stock from approximately 80,612,816 shares to approximately 5,374,187 shares.
August 11, 2023 | 3:23 pm
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Molecular Templates, Inc. (NASDAQ:MTEM) is undergoing a 1-for-15 reverse stock split to increase the per share trading price and regain compliance with Nasdaq's minimum bid price requirement. This will reduce the number of outstanding shares from approximately 80,612,816 to approximately 5,374,187.
The reverse stock split is a strategy used by companies to increase the price of their stock and reduce the number of outstanding shares. This move is often used to regain compliance with minimum bid price requirements of stock exchanges. In the short term, the impact on the stock price is neutral as the value of the company does not change. However, it may make the stock more attractive to investors who avoid lower-priced stocks, potentially leading to increased demand.
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