Inovio Pharmaceuticals (NASDAQ:INO) stock is taking a beating on Wednesday as the biotechnology company prepares for a reverse stock split.
The company’s shares will undergo a 1-for-12 reverse stock split. That reverse stock split is set to take place after markets close today and will see shares start trading on a split-adjusted basis tomorrow.
INO stock will keep its current ticket but switch to “45773H 409” as its new CUSIP number. The reverse split will reduce the total number of outstanding shares from 280.1 million to approximately 23.3 million. However, authorized shares will remain at 600,000,000.
What’s Behind the INO Reverse Stock Split?
Inovio Pharmaceuticals has decided to enact a reverse stock split to increase the price of its shares. It’s doing so to get the value of its stock above the $1 minimum bid price required to remain on the Nasdaq Capital Market.
While the reverse stock split changes the value and number of shares of INO stock, it doesn’t affect stakes. That means investors will continue to maintain their current holds in the company even after the split goes into effect.
INO stock is down slightly as of Wednesday morning, with some 144,000 shares traded. Its daily average trading volume is about 3.6 million shares.
Investors who want more of the most recent stock market stories are in luck!
We’re offering insight into all of the biggest stock market events happening on Wednesday! That includes what’s going on with shares of Meta Materials (NASDAQ:MMAT) stock, Evaxion Biotech (NASDAQ:EVAX) stock and Getaround (NYSE:GETR) stock today. You can catch up on all of these matters at the following links!
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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.
