NeuroBo Pharmaceuticals (NASDAQ:NRBO) stock is rocketing higher on Tuesday after the company underwent a reverse stock split this morning.
NRBO stock went through a 1-for-30 reverse stock split. This saw the company consolidating down 30 shares of its stock into a single share. This doesn’t change the stake investors have in the company but does increase the price of the company’s shares.
With the reverse stock split complete today, shares of the stock are rising higher. This builds on a similar rally yesterday that saw NRBO stock soar 125% as investors reacted to news of its board approving the reverse stock split.
Why a Reverse Stock Split?
NeuroBo went through with a reverse stock split out of necessity. The company needed to do so to boost the price of its shares above minimum listing requirements. Prior to this, shares were trading below $1 each, which could result in a delisting from the Nasdaq Exchange.
It’s worth noting that NeuroBo continues to hold 100 million authorized shares of NRBO stock. However, the reverse stock split saw it dropping its total number of outstanding shares from 26.7 million to roughly 900,000.
Interest in NRBO stock is higher today with heavy trading of its shares. As of this writing, nearly 2 million shares have been traded. That’s already above its daily average trading volume of about 1.5 million shares.
NRBO stock is up 80% as of Tuesday morning.
There’s more stock market coverage for traders to dive into below!
InvestorPlace is home to all of the hottest stock market news for Tuesday! That includes what has shares of Akero Therapeutics (NASDAQ:AKRO), Guardforce AI (NASDAQ:GFAI), and Social Capital Hedosophia Holdings (NYSE:IPOF) are up to today. You can get up to speed on all of that at the following links!
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On the date of publication, William White did not have (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.
