Tenax Therapeutics (NASDAQ:TENX) stock is on the move Wednesday after the company announced plans for a reverse stock split.
At 5:00 p.m. Eastern today TENX stock will undergo a 1-for-20 reverse stock split. That will see the company consolidate down every 20 shares of its stock into a single share. These consolidated shares will start trading when markets open tomorrow.
This reverse stock split will affect all shareholders of TENX stock equally. That means there won’t be a change in stakes after the split goes into effect. It also will not change the company’s market capitalization.
What’s Behind the Reverse Stock Split?
Tenax Therapeutics is moving forward with this reverse stock split as a way to increase the price of TENX stock. Currently, shares are trading for about 10 cents each. At that price, the stock isn’t meeting the minimum price requirement to trade on the Nasdaq.
With this reverse stock split, shares of TENX stock will increase in value. Doing so will allow the company to avoid delisting from the Nasdaq. As a result of this action, the company’s outstanding shares will change from about 45.83 million to 2.29 million
Today’s news brings with it heavy trading of TENX stock. As of this writing, more than 23 million shares have changed hands. That’s well above the daily average trading volume of about 4.5 million shares.
TENX stock is down 2.1% Wednesday morning after rising higher in earlier trading.
Investors seeking more of the latest stock market news will want to stick around!
InvestorPlace is home to all of the most recent stock market coverage traders need to know about on Wednesday! Among that is what has shares of GE HealthCare (NASDAQ:GEHC), Alibaba (NYSE:BABA) and Salesforce (NYSE:CRM) stock moving today. You can find out more on these matters at the links below!
More Wednesday Stock Market News
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- Salesforce Layoffs 2023: 5 Things to Know About the Latest CRM Job Cuts
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On the date of publication, William White 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.