Seelos Therapeutics Approves 1-For-8 Reverse Stock Split, To Begin Trading On A Reverse Stock Split-Adjusted Basis At The Opening Of The Market On Thursday, May 16, 2024
Portfolio Pulse from Benzinga Newsdesk
Seelos Therapeutics, Inc. (NASDAQ:SEEL) announced a 1-for-8 reverse stock split effective May 16, 2024, to meet Nasdaq's minimum bid price requirement for continued listing. The stock will trade on a reverse split-adjusted basis from the opening of the market on that date.
May 14, 2024 | 3:51 pm
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Seelos Therapeutics' 1-for-8 reverse stock split is aimed at meeting Nasdaq's minimum bid price requirement for continued listing. This action will reduce the number of outstanding shares, potentially increasing the stock price to comply with Nasdaq's $1.00 minimum bid price rule.
Reverse stock splits are often used by companies to increase their share price to comply with exchange listing requirements. While this does not fundamentally change the company's value, it can affect investor perception and meet regulatory standards. For SEEL, this move is crucial for maintaining its listing on the Nasdaq Capital Market. Short term, this might lead to positive sentiment as it shows the company's efforts to comply with market standards, potentially leading to an increase in stock price.
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