Why Seelos Therapeutics Shares Are Diving Today
Portfolio Pulse from Nabaparna Bhattacharya
Seelos Therapeutics, Inc. (NASDAQ:SEEL) shares plummeted after the company announced a 1-for-30 reverse stock split to meet Nasdaq's minimum bid price requirement. The split will reduce the number of authorized and outstanding shares significantly, aiming to maintain its listing on the Nasdaq Capital Market.
November 24, 2023 | 5:52 pm
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Seelos Therapeutics' stock price fell sharply due to the announcement of a reverse stock split, which is often viewed negatively by investors as it can indicate underlying issues with the company's stock performance.
Reverse stock splits are typically seen as a measure to boost share prices to meet exchange listing requirements and can be interpreted as a lack of confidence in the company's market performance. The significant drop in SEEL's share price reflects investor concerns over the company's need to undertake such a measure.
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