Why Onconetix (ONCO) Shares Are Down 27%
Portfolio Pulse from Henry Khederian
Onconetix Inc (NASDAQ:ONCO) shares fell by 29.9% to 8 cents after announcing a 1-for-40 reverse stock split to meet Nasdaq's minimum bid price requirement. The company's 2024 annual meeting approved several proposals, including director elections, amendments to the equity plan, and share issuances related to preferred stock conversion and private placements.
September 20, 2024 | 7:28 pm
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Onconetix's shares dropped nearly 30% following the announcement of a 1-for-40 reverse stock split, aimed at meeting Nasdaq's minimum bid price requirement. This move significantly reduces the number of outstanding shares.
The reverse stock split is a significant corporate action that directly impacts the stock price by reducing the number of outstanding shares, which can lead to a perception of financial instability or desperation to meet listing requirements, thus negatively affecting investor sentiment.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100