Why Tivic Health Systems (TIVC) Stock Is Getting Hammered
Portfolio Pulse from Henry Khederian
Tivic Health Systems (NASDAQ:TIVC) shares dropped by 25.89% after the company announced a 1-for-100 reverse stock split. The move is aimed at complying with Nasdaq listing requirements, as the company faced delisting due to low stock price. The reverse split is expected to restore compliance and maintain the company's Nasdaq listing.
August 23, 2023 | 2:39 pm
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Tivic Health Systems' stock price dropped significantly following the announcement of a 1-for-100 reverse stock split. This move is expected to help the company maintain its Nasdaq listing.
The announcement of a reverse stock split often leads to a decrease in the stock price as it may be perceived as a sign of trouble within the company. In this case, Tivic Health Systems is trying to avoid delisting from Nasdaq due to its low stock price. While the reverse split won't affect the overall value of the stock, it will reduce the number of shares outstanding, which can lead to increased volatility.
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