Eiger BioPharmaceuticals, Inc. Announces 1-For-30 Reverse Stock Split
Portfolio Pulse from Benzinga Newsdesk
Eiger BioPharmaceuticals, Inc. (NASDAQ:EIGR) announced a 1-for-30 reverse stock split to regain compliance with Nasdaq's minimum bid price requirement. The split will be effective on January 5, 2024, with post-split trading starting on January 8, 2024. The split was approved by stockholders and the Board on December 28, 2023, and will reduce outstanding shares from 44.4 million to approximately 1.5 million. Adjustments will be made to outstanding equity awards and the number of shares issuable under equity incentive plans.
January 04, 2024 | 1:32 pm
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Eiger BioPharmaceuticals, Inc. is conducting a reverse stock split to comply with Nasdaq's listing requirements, reducing its outstanding shares and potentially impacting its stock price.
Reverse stock splits are often used by companies to lift the market price of their shares to comply with exchange listing requirements. While this does not fundamentally change the company's value, it can lead to a perception of increased financial stability. However, the market reaction can be mixed as some investors may view a reverse split negatively, as it often reflects past stock price declines. The short-term impact on EIGR's stock price is uncertain, hence the neutral score.
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