Pasithea Therapeutics Corp Announces 1-For-20 Reverse Stock Split; Anticipates Common Stock Will Begin Trading On A Reverse Stock Split-Adjusted Basis At Market Open On January 2, 2024
Portfolio Pulse from Benzinga Newsdesk
Pasithea Therapeutics Corp (KTTA) announced a 1-for-20 reverse stock split effective January 2, 2024. The reverse split will reduce the number of authorized shares from 495 million to 100 million and will adjust all outstanding securities accordingly. Fractional shares will not be issued; instead, shareholders will receive a cash payment. The reverse split aims to maintain the company's stock price above the minimum required by Nasdaq and potentially improve marketability and liquidity.
December 28, 2023 | 4:41 pm
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Pasithea Therapeutics Corp's reverse stock split is likely to temporarily increase the stock price due to the reduced number of shares available. However, the long-term impact depends on the company's performance and market perception.
Reverse stock splits often lead to a temporary increase in stock price due to the reduced number of shares and higher price per share. However, they may also be viewed as a sign of trouble if the company is struggling to meet exchange listing requirements. The long-term effect will depend on the company's ability to improve its financials and market sentiment.
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