Why iBio Stock Is Plunging Sharply
Portfolio Pulse from Henry Khederian
iBio, Inc. (NASDAQ:IBIO) has announced a 20-to-1 reverse stock split effective November 29, 2023. Shareholders will receive one new share for every 20 old shares, with fractional shares paid out in cash. The reverse split aims to reduce the number of outstanding shares, and adjustments will be made to stock options, warrants, and equity plans. Shareholders with physical stock certificates will receive instructions for exchange, while those with brokerage accounts need not take any action. iBio's 52-week trading range is between $0.20 and $2.60.
November 28, 2023 | 8:01 pm
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iBio, Inc. has approved a 20-to-1 reverse stock split to reduce its outstanding shares, with the action taking effect on November 29, 2023. This could potentially increase the stock's market price per share but does not change the company's overall market capitalization.
Reverse stock splits often aim to increase the market price per share to meet exchange listing requirements or to improve perceptions of the stock. While it does not affect the company's valuation, it can sometimes be viewed negatively by the market as it may indicate underlying issues with the stock's performance. The short-term impact is uncertain as it could lead to a temporary increase in price due to a perceived improvement or a decrease if the market views the split negatively.
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