Why Nuburu Stock Is Tanking
Portfolio Pulse from Erica Kollmann
Nuburu, Inc. (AMEX:BURU) shares are down 36% after announcing a 1-for-40 reverse stock split effective June 24. The company aims to settle additional debt by issuing more shares and plans to maintain NYSE listing standards.
June 13, 2024 | 5:13 pm
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NEGATIVE IMPACT
Nuburu, Inc. (AMEX:BURU) shares are down 36% after announcing a 1-for-40 reverse stock split effective June 24. The company aims to settle additional debt by issuing more shares and plans to maintain NYSE listing standards.
The announcement of a 1-for-40 reverse stock split is generally perceived negatively by investors as it often indicates financial distress. The significant drop in share price (36%) reflects this sentiment. Additionally, the company's plan to issue more shares to settle debt could further dilute existing shareholders' value.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100