It’s been quite a week for investors in Novo Integrated Sciences (NASDAQ:NVOS). Shares of NVOS stock traded at less than 7 cents apiece to start last week but surged as high as 23 cents on Wednesday on a number of key business updates. Shares fell back to the 12-cent level before surging more than 30% in today’s session.
Today’s move appears to be tied to an upcoming shareholder meeting on Sept. 29. At this meeting, shareholders will be expected to vote on a reverse stock split in a 1 for 5 to 1 for 15 range, a move that would keep NVOS stock listed on the Nasdaq exchange.
As far as micro-cap penny stocks are concerned, Novo has shown the kind of upside volatility many speculators want to see. Let’s dive into what’s behind these moves and whether they can be sustained moving forward.
NVOS Stock Surges Ahead of Shareholder Meeting
For a company facing a potential delisting, a reverse stock split can certainly be viewed as a positive, at least in the near term. Of course, for Novo, there are other key factors that have driven investor interest in the company over the past week that may outshine this announcement. As fellow InvestorPlace contributor William White pointed out, a joint venture with Farm 7 Group and a share purchase agreement with SwagCheck provide investors with a couple of catalysts to consider.
Then there’s the fact that Novo is undertaking a strategic review. The company may be looking to pivot some of its resources to focus more intently on elderly care. Such a move is one that the market appears to like, at least in concept. We’ll have to see if and how this all pans out.
For now, NVOS stock is one that’s intriguing enough for me to put on the watch list. I’ll be watching to see how this stock performs into October, following its likely upcoming reverse split.
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On the date of publication, Chris MacDonald 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.
