Why Is Tonix Pharmaceuticals (TNXP) Stock Down 31% Today?


  • Tonix Pharmaceuticals (TNXP) stock is down Monday with a reverse stock split.
  • The company consolidated every 32 shares into a single share.
  • It did so to boost its price and avoid delisting.
TNXP Stock - Why Is Tonix Pharmaceuticals (TNXP) Stock Down 31% Today?

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Tonix Pharmaceuticals (NASDAQ:TNXP) stock is falling hard on Monday after the company’s shares underwent a reverse stock split this morning.

That reverse stock split saw Tonix Pharmaceuticals consolidate every 32 shares of TNXP stock into a single share. The company continues to trade shares under the same ticker but now uses 890260847 as its new CUSIP number.

Traders don’t often react well to reverse stock splits and that appears to be the case today. The stock is dropping with more than 427,000 shares traded as investors sell the stock. For the record, the company’s daily average trading volume is about 97,000 shares.

What’s Behind the TNXP Reverse Stock Split

Tonix Pharmaceuticals enacted this reverse stock split to boost the price of its shares. It did this to avoid delisting from the Nasdaq. Prior to the reverse split, shares were trading below the minimum bid price of $1 per share.

Tonix Pharmaceuticals notes that it isn’t adjusting its number of shares of authorized common stock with this reverse split. It doesn’t have to do so as it obtained shareholder approval for this reverse split on May 22, 2024.

TNXP stock is down 30.7% as of Monday morning.

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On the date of publication, William White did not hold (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.

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