Seelos Therapeutics Announces 1-For-30 Reverse Stock Split
Portfolio Pulse from Benzinga Newsdesk
Seelos Therapeutics, Inc. (NASDAQ:SEEL) has announced a 1-for-30 reverse stock split effective on November 28, 2023. The action aims to comply with Nasdaq's minimum bid price requirement for continued listing. Post-split, the number of authorized shares will decrease from 480 million to 16 million, and the number of outstanding shares will reduce from 167.7 million to approximately 5.6 million. The reverse split will also affect outstanding warrants, stock options, and equity incentive plans with adjusted exercise prices.
November 24, 2023 | 4:01 pm
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Seelos Therapeutics' reverse stock split is a strategic move to comply with Nasdaq's listing requirements. The reduction in outstanding shares may lead to a temporary increase in stock price due to perceived scarcity, but the company's market capitalization remains unchanged.
Reverse stock splits are often used by companies to lift share prices to meet exchange listing requirements. While this does not fundamentally alter the company's value, it can lead to a short-term positive sentiment as the stock price adjusts to reflect the reduced number of shares available. However, the long-term impact depends on the company's performance and investor perception.
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