Why Avenue Therapeutics (ATXI) Shares Are Getting Hammered
Portfolio Pulse from Henry Khederian
Avenue Therapeutics Inc (NASDAQ:ATXI) shares plummeted 28.5% to $0.09 after announcing a 1-for-75 reverse stock split to meet Nasdaq's minimum bid price requirement. The split, effective April 26, will reduce outstanding shares to approximately 0.6 million. This move aims to maintain its Nasdaq listing by ensuring a minimum bid price of $1.00 per share.

April 24, 2024 | 3:39 pm
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Avenue Therapeutics' stock price fell significantly due to the announcement of a 1-for-75 reverse stock split, aimed at meeting Nasdaq's listing requirements.
The sharp decline in ATXI's stock price is a direct reaction to the reverse stock split announcement. Reverse splits often lead to negative investor sentiment as they can be perceived as a measure to artificially maintain stock prices to comply with exchange listing requirements. The significant reduction in outstanding shares and the immediate impact on the stock price reflect investors' concerns about the company's future prospects and its ability to maintain value.
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