Why Is PainReform (PRFX) Stock Up 48% Today?

  • PainReform (PRFX) stock is rising on a delisting update.
  • The company got an extension from the Nasdaq exchange.
  • That gives it until Aug. 7, 2023, to regain compliance.
PRFX Stock - Why Is PainReform (PRFX) Stock Up 48% Today?

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PainReform (NASDAQ:PRFX) stock is rocketing higher on Wednesday following an update on its delisting ordeal.

A press release confirms that the company has received a letter from the Nasdaq exchange. That letter extends the company’s time to regain compliance on the exchange by another 180 days, which is Aug. 7, 2023.

PainReform’s problem is PRFX stock is still trading below $1 per share. The company was first alerted about the delisting back on Aug. 10, 2022. That initial warning gave it until Feb. 6, 2023, to regain compliance, which it failed to do.

In order to regain compliance, the company will have to get PRFX stock above $1 per share for a period of 10 consecutive trading days. If it can accomplish this, the delisting matter will be closed by the Nasdaq.

What This Means for PRFX Stock

Extra time to regain Nasdaq compliance is welcome news for PRFX stockholders. While it’s unknown how the company will regain compliance, it does have options. That includes one that many penny stocks take, which is a reverse stock split.

If PRFX stock undergoes a reverse stock split, that could see it boost the price of its shares via consolidation. That allows it to increase its stock price while maintaining its current market capitalization. It also wouldn’t change investors’ stakes in the company.

PFRX stock is up 48% as of Wednesday morning as some 3 million shares change hands. For comparison, the company’s daily average trading volume is about 35,000 shares.

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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.

Article printed from InvestorPlace Media, https://investorplace.com/2023/02/why-is-painreform-prfx-stock-up-48-today/.

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