eFFECTOR Therapeutics Announces 1-For-25 Reverse Stock Split, Will Become Effective At 12:01 A.M. Eastern Time, On January 12, 2024.
Portfolio Pulse from Benzinga Newsdesk
eFFECTOR Therapeutics, Inc. (NASDAQ:EFTR) has announced a 1-for-25 reverse stock split to regain compliance with Nasdaq's minimum bid price requirement. The split will be effective on January 12, 2024, reducing the number of outstanding shares from approximately 74.9 million to 3.0 million. The company's common stock will continue trading under the symbol 'EFTR' with a new CUSIP number. No fractional shares will be issued; instead, shareholders will receive a cash payment for fractional entitlements.
January 09, 2024 | 1:10 pm
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eFFECTOR Therapeutics' reverse stock split aims to comply with Nasdaq's minimum bid price rule, reducing outstanding shares and potentially increasing the stock price to meet the requirement.
The reverse stock split is a strategic move to increase the per-share price of EFTR to maintain its listing on the Nasdaq. This action typically results in a temporary increase in stock price due to the reduced number of shares available, which may attract investors. However, the long-term impact will depend on the company's performance and market perception.
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