Why Sonoma Pharmaceuticals (SNOA) Stock Is Moving
Portfolio Pulse from Henry Khederian
Sonoma Pharmaceuticals (SNOA) shares dropped by 11.9% following the announcement of a 1-for-20 reverse stock split to meet Nasdaq's $1.00 minimum bid price requirement. The split will reduce outstanding shares from 20 million to 1 million and increase authorized shares from 24 million to 50 million.
August 28, 2024 | 1:32 pm
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Sonoma Pharmaceuticals announced a 1-for-20 reverse stock split to comply with Nasdaq's $1.00 minimum bid price requirement, causing shares to drop 11.9%. The split will consolidate shares and increase authorized shares.
The reverse stock split is a significant corporate action aimed at maintaining Nasdaq listing requirements, which often leads to a negative short-term market reaction as seen by the 11.9% drop in share price. The consolidation of shares and increase in authorized shares may also affect investor perception.
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