Sonendo (NYSE:SONX) stock is on the rise Wednesday despite the medical technology company recently receiving a delisting notice.
That notice comes from the New York Stock Exchange and has to do with the price of SONX stock. The problem the exchange has with SONX shares is how long they have been trading below the $1 minimum bid price.
Sonendo has clarified that it intends to respond to the non-compliance notice within 10 business days. The company also notes it will seek to alleviate the price deficiency by seeking approval from shareholders for actions to do so at its next meeting.
While Sonendo doesn’t mention a reverse stock split, that’s most likely how it will increase the price of its shares. This is a common tactic used by companies that are in danger of being delisted due to a low bid price. It consolidates shares to increase the price of the stock without affecting market capitalization.
SONX Stock Movement
It might seem strange that SONX stock is up alongside the delisting notice news, but there is a reason. The company’s shares initially dropped 55.6% when the news was announced yesterday. That means today’s gains are simply the stock bouncing back from the major drop in price.
SONX stock is up 37.8% as of Wednesday morning but was down 85.5% year-to-date as of yesterday’s close.
Investors looking for even more of the most recent stock market stories will want to keep reading!
InvestorPlace is home to all of the hottest stock market news traders need to know about on Wednesday! That includes the biggest pre-market stock movers this morning, the latest news concerning shares of SmileDirectClub (NASDAQ:SDC) stock and more. All of that news is ready to go at the links below!
More Wednesday Stock Market News
- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Wednesday
- SDC Stock Alert: Prepare for SmileDirectClub’s Nasdaq Delisting Tomorrow
- Why Are the Magnificent 7 Stocks Down Today?
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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.
