Oncternal Therapeutics Announces 1-For-20 Reverse Stock Split, Effective Jan. 8
Portfolio Pulse from Benzinga Newsdesk
Oncternal Therapeutics has announced a 1-for-20 reverse stock split, which will be effective on January 8. This corporate action is typically used by companies to boost the share price by reducing the number of shares outstanding, which may help to meet exchange listing requirements or improve the stock's perception among investors.
January 04, 2024 | 2:11 pm
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Oncternal Therapeutics' reverse stock split is likely to increase the share price nominally by reducing the number of shares outstanding. However, this action does not fundamentally change the company's valuation and may be viewed negatively if perceived as a move to maintain listing compliance.
Reverse stock splits are often executed by companies whose share price has fallen substantially. While it can help with compliance for exchange listing requirements and can sometimes improve the perception of the stock, it does not change the underlying fundamentals of the company. Investors often have mixed reactions to such news, and the impact on the stock price can be neutral in the short term as the market adjusts to the new share structure.
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