Quoin Pharmaceuticals (NASDAQ:QNRX) stock is taking a massive beating on Monday as the company prepares for an ADS ratio change.
According to a filing from Quoin Pharmaceuticals, the company is enacting an ADS ratio change that will switch its stock from 1 for 5,000 shares to 1 for 6,000 shares. This is the equivalent of a 1-for-12 reverse stock split.
Quoin Pharmaceuticals expects this ADS ratio change to go into effect on or around July 18. The stock is dropping ahead of that, which isn’t too unexpected as traders often react this way to reverse stock splits.
What’s Behind the QNRX ADS Ratio Change?
Quoin Pharmaceuticals is enacting this ratio change to boost the price of QNRX stock. It’s doing so to meet the minimum listing requirements to remain on the Nasdaq Exchange. Currently, its shares are trading below the $1 minimum bid price.
News of the ADS ratio change brings with it heavy trading of QNRX stock as investors sell their shares. As of this writing, more than 628,000 shares of the company’s stock have changed hands. That’s a major jump over its daily average trading volume of about 21,000 shares.
QNRX stock is down 90% as of Monday morning.
Investors looking for more of the most recent stock market news will want to keep reading!
We have all of the biggest stock market stories that traders need to know about on Monday! A few examples include why shares of Argenx (NASDAQ:ARGX) and Acumen Pharmaceuticals (NASDAQ:ABOS) stock are up, as well as the biggest pre-market stock movers this morning. We’ve got all of that news ready to go at the links below!
More Monday Stock Market News
- Why Is Argenx (ARGX) Stock Up 27% Today?
- Why Is Acumen Pharmaceuticals (ABOS) Stock Up 46% Today?
- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Monday
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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.
