Greenlane (NASDAQ:GNLN) stock is falling hard on Tuesday as the company’s shares undergo a reverse stock split.
This reverse stock split went into effect after markets closed on Monday. It saw shares of GNLN stock undergo a 1-for-10 reverse stock split. This has it consolidating 10 shares of its Class A shares into a single share of stock.
Greenlane isn’t undergoing this reverse stock split for no reason. The main purpose of the reverse split is to increase the price of GNLN stock. The company is doing so as its shares have been trading at around 30 cents each. That puts it in danger of being delisted due to the Nasdaq’s minimum bid requirement of $1 per share.
Shares of GNLN stock saw a fair amount of activity yesterday as traders sold their shares ahead of the split. That had some 440,000 shares changing hands compared to its daily average of around 11,000 shares. Now it’s seeing massive pre-market trading on Tuesday with some 5.4 million shares on the move.
What This Means for GNLN Stock
While the reverse stock split helps Greenlane avoid delisting, it’s not going over well with investors today. That’s not overly surprising as this is normal from a reverse stock split. Even if it doesn’t affect the stakes an investor holds in a company.
GNLN stock is down 90% as of Tuesday morning.
Investors can find even more of the latest stock market news below!
We’ve got all of the latest happenings traders need to know about on Tuesday! Among these are what’s moving shares of T2 Biosystems (NASDAQ:TTOO) and Visionary Education Tech (NASDAQ:VEDU) stock, as well as the biggest pre-market stock movers this morning. All of that news is ready to go at the following links!
More Tuesday Stock Market News
- Why Is T2 Biosystems (TTOO) Stock Up 17% Today?
- Why Is Visionary Education Tech (VEDU) Stock Up 55% Today?
- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Tuesday
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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.
