Aditxt (NASDAQ:ADTX) stock is in the spotlight after the company implemented a reverse stock split yesterday. Down 16% as of this writing, today’s movement in ADTX stock comes after shares soared more than 100% yesterday.
Based in Virginia, Aditxt develops products that enhance people’s immune systems. Its offerings include AditxtScore, which evaluates immune systems, and Apoptotic DNA Immunotherapy, a technology that seeks to provide the same benefits of traditional immune suppression drugs while significantly reducing the intensity of their negative side effects.
Here’s what investors should know about ADTX stock moving forward.
ADTX Stock and the Reverse Split
Yesterday afternoon, Aditxt announced that it would carry out “a 1-for-50 reverse split of its common stock” to go into effect yesterday at 4:01 pm Eastern. The company noted that ADTX stock shareholders approved the split back on Sept. 7.
As a result of the reverse split, Aditxt exchanged one share of its stock for every 50 of its shares outstanding. Reverse splits reduce the number of shares outstanding, making the price of a given stock increase as a result. Companies sometimes carry out reverse splits in order to make themselves appear more stable and prosperous.
Reportedly, the company made its split move yesterday “primarily” in order to follow a Nasdaq rule that requires prices on the exchange to stay above $1. Yesterday, ADTX stock closed at just 37 cents. It now trades around the $15 mark.
Another Notable Development for Aditxt
Reverse split aside, there are some other notable developments for Aditxt. In July, the company announced positive toxicology data on ADI-100. The data showed that the immunotherapeutic drug — a potential treatment for the “rejection of transplanted organs, skin allografting, autoimmune diseases and allergies” — will not likely trigger any serious, adverse events.
“The toxicology findings will provide vital supporting evidence,” Aditxt said in a statement. The company has plans to file an Investigational New Drug (IND) application with regulators soon enough.
On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.