Axcella Health, a leading biotechnology company, has announced its plans to effect a 1-for-25 reverse stock split. The news has resulted in a dip in the company’s stock price during after-hours trading.
Date and Trading Basis
The reverse split is scheduled to take place on September 18th, with the company’s shares set to begin trading on a reverse stock split basis starting September 19th.
At 5:44 p.m. EDT, Axcella’s stock was trading 18.7% lower, at 82 cents per share. Trading volume exceeded 2.3 million shares. The stock had already registered a 15.1% loss during the regular session, closing at $1.01 per share.
However, despite the recent decline, the stock has witnessed an impressive year-to-date gain of over 208%.
Objective and Rationale
The primary objective behind the reverse stock split is to increase the per-share market price and meet the Nasdaq’s minimum per-share bid price requirement. By achieving this, Axcella aims to enhance its market standing.
Axcella Health is dedicated to pioneering a new approach in addressing the complexities of diseases by utilizing compositions of endogenous metabolic modulators.