Why Processa Pharmaceuticals (PCSA) Shares Are Nosediving
Portfolio Pulse from Henry Khederian
Processa Pharmaceuticals Inc (NASDAQ:PCSA) shares dropped 23% to $0.21 after announcing a 1-for-20 reverse stock split to meet Nasdaq's minimum bid price requirement. The split will reduce outstanding shares from 24.6 million to 1.2 million, effective January 22, with no fractional shares issued. Continental Stock Transfer & Trust will act as the exchange agent for the reverse stock split. PCSA's 52-week range is $0.18 to $1.27.
January 18, 2024 | 3:58 pm
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Processa Pharmaceuticals' stock price fell sharply by 23% following the announcement of a 1-for-20 reverse stock split, aimed at complying with Nasdaq's minimum bid price requirement.
Reverse stock splits often result in an immediate negative perception among investors, as they can be seen as a measure to avoid delisting due to a low share price. The significant drop in PCSA's share price reflects investor concerns over the company's need to resort to such measures. The reduction in outstanding shares may also contribute to increased volatility in the stock price.
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